Mississippi Company

Filed Under » ,
Dictionary Says

Definition of 'Mississippi Company'

An example of a famous speculative bubble that occurred from 1719-1720. In 1715 the country of France was in a dire economic straits, with an unstable treasury and a wildly fluctuating currency. John Law, a Scotsman and noted gambler living in exile in France, helped the government convert to paper currency (by taking metallic coinage deposits and giving banknotes equal to value of the currency on the day of deposit) and find its economic footing. In 1717 he acquired the Mississippi Company, to which the French government gave a monopoly on trading rights with its colonies in gratitude for his assistance.
Investopedia Says

Investopedia explains 'Mississippi Company'

In 1719 Law created a plan to restructure the French national debt under the Mississippi Company's auspices, exchanging company shares for debt and guaranteeing significant profits. Investors flocked, the national bank (now effectively owned by Law) printed money in response and massive inflation ensued. A bank run followed in May 1721 and the French treasury admitted that it did not have enough metallic currency to cover its paper instruments. It attempted to devalue Mississippi Company shares to no avail and finally the bank stopped paying in coinage. Shares in the company quickly plummeted to zero, the company was overtaken and divested of its assets divested and Law went into exile once more.

Other famous speculative bubbles include:
  • The 1630s tulip bubble in the Netherlands
  • The South Sea bubble of 1720
  • The bull market of the roaring 20s from 1924-1929
  • Japan's bubble economy of 1980
     
Search results for

'Mississippi Company'

  • What burst the Mississippi bubble?

    http://www.investopedia.com/ask/answers/09/mississippi-bubble.asp
    ... Law decided to expand by acquiring the Mississippi Company. The company held a
    government-backed monopoly over trading with French Louisiana. ...

  • Southern Company On Track With New Generation

    http://stocks.investopedia.com/stock-analysis/2011/Southern-Company-On-Track-With-New-Generation-SO-D-DUK0323.aspx
    ... Southern Company is also building a generation plant in Mississippi. The
    Ratcliffe plant is an Integrated Gasification Combined ...

  • Odds And Ends In The Energy Sector

    http://stocks.investopedia.com/stock-analysis/2010/Odds-And-Ends-In-The-Energy-Sector-QEP-NFX-PVA-RRC0830.aspx
    ... Penn Virginia Corporation (NYSE:PVA) is one of the few exploration and production
    companies active in the Selma Chalk in Mississippi. The company drilled and ...

  • Other Shale Plays Advance

    http://stocks.investopedia.com/stock-analysis/2011/Other-Shale-Plays-Advance-ECA-BBEP-DVN-WY-DNR1107.aspx
    ... is involved with the Tuscaloosa Marine Shale, an early stage play that is present
    in areas near the Louisiana and Mississippi border. The company has drilled ...

  • Denbury Resources: A Leader In Tertiary Oil Recovery

    http://stocks.investopedia.com/stock-analysis/2011/Denbury-Resources-A-Leader-In-Tertiary-Oil-Recovery-DNR-OXY-REN-HES0602.aspx
    ... Denbury Resources gets most of its carbon dioxide supply from the Jackson Dome field
    in Mississippi, where the company has 7.1 TCF of proved reserves at the ...

  • Genesis Energy Gains Power

    http://stocks.investopedia.com/stock-analysis/2010/Genesis-Energy-Gains-Power-GEL-DNR-IP-BHP-VLO-EPD1201.aspx
    ... Genesis Energy LP has a 20-year lease with Denbury Resources (NYSE:DNR) to
    supply carbon dioxide to the company's fields in Mississippi. ...

  • Selma Chalk Is No Slouch For Natural Gas

    http://stocks.investopedia.com/stock-analysis/2010/Selma-Chalk-Is-No-Slouch-For-Natural-Gas-DNR-PVA-EOG0126.aspx
    ... The Selma Chalk Drillers Denbury Resources (NYSE:DNR) is mostly known for its enhanced
    oil recovery (EOR) operations in Mississippi, but the company also has a ...

  • Betting On Penn National

    http://stocks.investopedia.com/stock-analysis/2009/Betting-On-Penn-National-PENNWYNNMGMBYD1015.aspx
    ... Boyd is expected to earn 44 cents this year and 55 cents next year. The company
    has a presence in Illinois, Louisiana and Mississippi. ...

  • American Midstream Partners Revew

    http://stocks.investopedia.com/stock-analysis/2011/American-Midstream-Partners-Revew-AMID-XOM-DOW-COP-EEP0726.aspx
    ... Assets AMID owns and operates nine natural gas gathering systems in Alabama, Louisiana,
    Texas and Mississippi. The company also has three facilities to process ...

  • Noble Energy Still Hot For The Deepwater Gulf

    http://stocks.investopedia.com/stock-analysis/2010/Noble-Energy-Still-Hot-For-The-Deepwater-Gulf-NBL-BP-RDS.A-RDS.B-BHP-STO-MUR0607.aspx
    ... Galapagos Prospect Noble Energy is also involved with the Galapagos Prospect on
    three other blocks in the Mississippi Canyon area. The company plans to drill ...

Related Articles

Partner Links