The Bubble Act was a law passed in England in 1720, aimed at regulating joint-stock companies and preventing speculative investments. It was introduced in response to the South Sea Bubble, a financial crisis caused by excessive speculation in the shares of the South Sea Company. The act required companies to obtain a royal charter before issuing shares, which aimed to protect investors from fraudulent schemes. The act had significant implications for the development of corporate finance in England. While it curtailed the formation of new companies, it also led to a more cautious approach to investment. Over time, the Bubble Act was repealed, paving the way for the growth of the modern stock market and joint-stock companies.