Question

What happened to the shares in the Mississippi Company? How did people react?

Answer 1

Law overtold the wealth of Louisiana which made people go want to buy stock for the Mississippi Company

Answer 2

Answer:

The shares of the Mississippi Company were issues by John Law who was director of this company. The purpose of the shares was to attract investors for the Western Colonies, specially Lousiana. John Law was appointed by the French Monarchy to rule The Banque Royale and to direct the merchandising strategy of the Company.

Law exaggerated about the wealth of Lousiana and started speculating with the shares. That caused that the Banque royale issued more stocks hoping to have a sustainable marketing scheme. short after the Banque Royale had to admit that the amount of bills and shares issued was bigger than the amount of metal coinage the bank already had. When the Banque Royale admmited that, all the investors tried to change their bills for coinage. This is known as an "economic bubble" which bursted and forced the Banque Royale to stop making payments for the shares. Because of this, John Law was dismissed ad he had to flee to Venice.

Explanation: