Which company's collapse ended the Mississippi Bubble in France in 1720?

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The collapse of the Mississippi Company ended the Mississippi Bubble in France in 1720.

The company was controlled by Scottish financier John Law, who also managed France’s Banque Générale and later the Banque Royale. The company received trading privileges and rights connected with France’s North American territories, especially the Mississippi region.

Law’s system linked company shares, paper money, and government finance. Investors drove shares to extraordinary prices in Paris before confidence failed. The resulting rush to sell caused the share price and paper-money system to collapse during 1720.

The episode is sometimes called the Mississippi Bubble or the Mississippi Scheme. John Law is often named as the central figure, but the company itself was the financial vehicle whose collapse brought the speculation to an end.

Source: Wikipedia · fact-checked Oct. 2026

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