When you invest in a company, you’re paying for a piece of that company’s expected future cash flows. When the company’s future earnings meet or exceed expectations, its stock price should rise and increase the market value of your investment. When earnings are strong, the company can also issue dividends back to its shareholders – putting cash back into your account for spending or reinvestment. Finally, a company can buy back its own shares, which reduces the number of shares outstanding and increases the value of those shares.