Bursting the Bubble Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst? Share | Have A Question About This Topic? Address Thank you! Oops! Related Contents What Smart Investors Know Smart investors take the time to separate emotion from fact. A Primer on Dividends A company's profits can be reinvested or paid out to the company’s shareholders as “dividends." 5 Smart Investing Principles Principles that can help create a portfolio designed to pursue investment goals.