Bubble Act


Bubble Act

The Bubble Act of 1720 (Officially titled the Royal Exchange and London Assurance Corporation Act 1719) was an Act of the Parliament of Great Britain (citation 6 Geo. 1, c. 18) that forbade all joint-stock companies not authorised by royal charter. Various motivations have been suggested for the Act. These include the desire to prevent speculation such as that which produced the contemporary South Sea Bubble; an attempt to prevent smaller non-charter from forming and so reduce the importance of Parliament in regulating businesses; or that the South Sea Company itself wanted to prevent other bubbles from forming that might have decreased the intensity of its own.Ron Harris, "The Bubble Act: Its Passage and Its Effects on Business Organization", "The Journal of Economic History", Vol. 54, No. 3. (Sep., 1994), pp. 610-627] Recent scholarship indicates that the last of these was the cause: it was passed to prevent other companies from competing with the South Sea Company for investors' capital [Cooke, "Corporation Trust and Company" at 82; Gower (1952) 68 "LQR" 214] . In fact, the Act was passed in June 1720, before the peak of the bubble. The Act was repealed in 1825.

Under the terms of the act, the Royal Exchange Assurance Corporation and the London Assurance Corporation were granted charters to write marine insurance. Until 1824 they remained the only joint-stock firms with such a charter.

Notes

External links

*Ron Harris, [http://www.jstor.org/stable/2123870?seq=2 'The Bubble Act: Its Passage and Its Effects on Business Organization'] (1994) 54(3) "The Journal of Economic History", 610-627


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Bubble Act — Bubble Act, s. Bubbles …   Meyers Großes Konversations-Lexikon

  • Bubble Act — An English statute passed to prevent corporate frauds such as the South Sea Bubble. See South Sea Bubble. An early English statute which provided that any company formed without authority of Parliament and asserting powers and privileges not… …   Ballentine's law dictionary

  • Bubble — may refer to:Physical bubbles* Liquid bubble, a globule of one substance encased in another, usually air in a liquid * Soap bubble, a bubble formed by soapy water * Antibubble, a droplet of liquid surrounded by a thin film of gasArts and… …   Wikipedia

  • bubble — An extravagant or unsubstantial project for extensive operations in business or commerce, generally founded on a fictitious or exaggerated prospectus, to ensnare unwary investors. Companies formed on such a basis or for such purposes are called… …   Black's law dictionary

  • bubble — An extravagant or unsubstantial project for extensive operations in business or commerce, generally founded on a fictitious or exaggerated prospectus, to ensnare unwary investors. Companies formed on such a basis or for such purposes are called… …   Black's law dictionary

  • Bubble Puppy — Origin Texas, United States Genres Psychedelic rock Years active 1966 1969 2011 present Members Rod Prince Todd Potter David Fore Jim …   Wikipedia

  • bubble — [bub′əl] n. [ME bobel, of echoic orig., as in MDu bubbel] 1. a very thin film of liquid forming a ball around air or gas [soap bubbles] 2. a tiny ball of air or gas in a liquid or solid, as in carbonated water, glass, etc. 3. anything shaped like …   English World dictionary

  • Act Like You Know (MC Lyte album) — Act Like You Know Studio album by MC Lyte Released September 17, 1991 ( …   Wikipedia

  • Bubble rafts — A material s observable and measurable mechanical properties strongly depend on its atomic and microstructural configuration and characteristics. This fact is intentionally ignored in Continuum Mechanics, which assumes a material to have no… …   Wikipedia

  • bubble — bubbleless, adj. bubblelike, adj. bubblingly, adv. /bub euhl/, n., v., bubbled, bubbling. n. 1. a nearly spherical body of gas contained in a liquid. 2. a small globule of gas in a thin liquid envelope. 3. a globule of air or gas, or a globular… …   Universalium


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.