Later extended to American colonies, including: The Bubble Act 1720 (also Royal Exchange and London Assurance Corporation Act 1719)[1] was an act of the Parliament of Great Britain passed on 11 June 1720 that incorporated the Royal Exchange Assurance Corporation and London Assurance Corporation, but more significantly forbade the formation of any other joint-stock companies unless approved by royal charter.

Its provisions were extended later by the Bubble Schemes (Colonies) Act 1740 (14 Geo.

They include the desire to prevent the speculation that produced the contemporary South Sea Bubble, an attempt to prevent smaller non-charter companies from forming and so reduce the importance of Parliament in regulating businesses; or the South Sea Company itself wanting to prevent other bubbles from forming that might have decreased the intensity of its own.

In fact, the act was passed in June 1720, before the peak of the bubble.

[9] The act declared "illegal and void" all business that raised money or offered shares in the manner of a chartered company without a charter from the royal government.