Which 1720 French financial scheme collapsed in the crash known as the Mississippi Bubble?

The Mississippi Bubble crash centered on the Mississippi Company in France in 1720.

Scottish financier John Law reorganized the company and promoted shares linked to trade and development in France's Louisiana territory. Law also controlled the Banque Générale, later the Banque Royale, allowing him to expand the money supply and support rising share prices. Investors bought shares in Paris amid intense speculation.

The company's promised wealth was far greater than its actual profitable trade. Confidence weakened when doubts grew about Louisiana's resources and when investors tried to exchange shares for cash. The price collapsed, ruining many speculators and damaging Law's financial system.

The Mississippi Bubble is often discussed alongside Britain's South Sea Bubble, which also burst in 1720. They were separate companies and schemes, although both reflected the period's enthusiasm for publicly traded shares and government-linked monopolies.