Which French company stood at the center of the Mississippi Bubble, which burst in 1720?

The Mississippi Company stood at the center of the French Mississippi Bubble, which burst in 1720.

The company was associated with Scottish financier John Law, who gained control of French colonial trading privileges and helped create a large paper-money and banking system. Investors bought shares partly because the company was promoted as having extraordinary wealth and commercial prospects in the Mississippi region of North America.

Share prices rose rapidly in Paris, attracting both wealthy investors and ordinary speculators. The boom depended heavily on confidence in Law’s system and in the value of the company’s shares. When holders began exchanging shares for money and confidence declined, the price collapsed.

The Mississippi Bubble is frequently paired with Britain’s South Sea Bubble because both occurred in 1720. They were not the same company or market, however: the Mississippi episode was centered in France and connected to Law’s financial system, while the South Sea episode was centered in Britain.