Bubble Act
A Dictionary of Law · William C. Anderson · 1889
A Dictionary of Law
The statute of 6 Geo. I (1720), c.
18 (enacted after the South Sea project had beggared half the nation), made all unwarrantable undertakings by unlawful subscriptions, then known as "bubbles," subjects of praemunire.* By 6 Geo. IV (1826), the greater portion of that statute was repealed, and illegal companies left to be dealt with by the common law.^ "Bubble Acts" and "bubble companies" are still in use in speaking of persons who have been defrauded by subscribing to the stock of companies organized either without real capital or business, or with capital but for dishonest speculation.