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Bubble act

   Also found in: Wikipedia 0.01 sec.

BUBBLE ACT, Eng. law. The name given to the statute 6 Geo. I., c. 18, which was passed in 1719, and was intended " for restraining several extravagant and unwarrantable practices therein mentioned." See 2 P. Wms. 219.



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England's legislative response to the bursting of the South Sea bubble three centuries back, the Bubble Act of 1721, was a ban on the founding of joint-stock companies without a royal charter--a provision that slowed the development of British industry.
They encouraged the politicians (many of whom were their own shareholders) to adopt the so-called Bubble Act requiring all companies issuing shares to have a royal charter.
Parliament suppressed the Land Bank by applying the Bubble Act to the colonies in 1740.
 
 
 
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