Which European stock-market crash of 1720 followed the collapse of John Law's Mississippi Company?

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The European stock-market crash of 1720 that followed the collapse of John Law's Mississippi Company was the Mississippi Bubble.

John Law promoted the Mississippi Company as a vehicle for exploiting French territories in North America. Its shares rose dramatically as investors bought into claims about colonial wealth and the company's privileged trading position. The scheme became linked to a bank issuing paper money, increasing the financial system's exposure when confidence failed.

By late 1720, the share price had collapsed, ruining many investors and forcing Law to flee France. The Mississippi Bubble unfolded at roughly the same time as Britain's South Sea Bubble, but the companies and national financial systems were different. Both episodes are early examples of speculative bubbles driven by promotional claims, easy credit, and rapidly rising share prices.

Source: Wikipedia · fact-checked Oct. 2026

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