What Is Capital Improvement?

Capital operation, also known as capital operation, consumer investment, chain sales, highlight economy, offshore economy, etc., is a concept created by the business community in mainland China. It refers to a management method that uses market rules to achieve value appreciation and benefit growth through the technical operation of capital itself or the scientific movement of capital. In short, it is a business activity that makes use of the capital market to grow from small to large and with inexhaustible know-how and means by making money by buying and selling enterprises and assets ^[1] .

Capital operation

(1) Capital operation = funds

Issue of stocks

There is a close connection between capital operation, commodity management and asset management in essence, but there are differences between them. Asset management, commodity management and capital operation cannot be equated. Capital operation has the following three characteristics:

(1) Liquidity of capital operation

Capital is a value that can add value. Capital idleness is capital loss. The life of capital operation lies in movement. Capital has time value. A certain amount of capital has different values at different times. Today, a certain amount of capital. More valuable than future capital of the same amount.

(2) Value-added of capital operation

Realizing capital appreciation is an essential requirement of capital operation and an inherent characteristic of capital. The purpose of capital flow and reorganization is to maximize capital appreciation. The capital operation of an enterprise is that capital participates in the reproduction process of the enterprise and continuously changes its form, and participates in the movement of product value formation. In this movement, the labor's live labor is combined with the materialized labor of the means of production. Value-added.

(3) Uncertainty of capital operation

Capital operation activities, risk uncertainty and benefits coexist. Any investment activity is a kind of risky capital investment, and there are no risk-free investments and returns. This requires the operator to strive to make capital operation decisions must consider both capital appreciation and risks. It should be based on the long-term development of the enterprise. The operator should try to diversify the capital's operating risks and spread the capital out. Absorb other capital

Different from commodity management

1. Different business objects. The object of capital operation is the capital and movement of the enterprise. The focus is on the value of the business process of the enterprise and the pursuit of value added. The object of commodity management is the product and the production and sales process. The basis of management is the plant, machinery and equipment, product design, etc., and the emphasis is on the use value of the business process.

2. Different business areas. Capital operations mainly operate in the capital market (capital markets include securities markets and non-securities

Its core idea is to collect scattered funds and redistribute them according to a certain proportion, so that some people can quickly get rich and the vast majority of people can earn money. ^[3]

Due to the lack of supervision, there are a large number of illegal elements posing as capital to operate illegal pyramid schemes. Consumers are reminded to identify and not be deceived ^[4] .

In early 2015, the Economic Investigation Brigade of the Nansha District Public Security Bureau set up a task force to gradually verify that the MLM organization is headed by Huang, and the core characters of the organization include "CEO" Li Moquan, Liang Mouxia, and others. Since 2012, the organization has been developing offline under the guise of "Sunshine Project" and "Business Chamber of Commerce". It has collected a membership fee of 50,800 yuan per person. In just 3 years, people involved in MLM activities have spread across Dagang Town, Nuclear town, Shunde, Foshan, Zhongshan, Zhuhai, Shenzhen and other places, involving more than 1,000 people ^[5] .