What Is Development Capital?

Capital operation is also known as "capital operation". "Capital operation" refers to a method of operation that uses market rules to achieve value appreciation and benefit growth through the technical operation and scientific movement of capital itself. All existing tangible and intangible assets are effectively operated through various methods such as liquidity, fission, combination, and optimized allocation to maximize value-added. In this sense, we can divide the capital operation of an enterprise into two operating modes: capital expansion and capital contraction. It is no exaggeration to say that capital operations belong to the top talents in business management. It requires good financial management knowledge, extensive financial knowledge, super deep banking channels, and corporate background. Capital, in the sense of economics, refers to the basic production factors used for production, that is, physical resources such as capital, plant, equipment, and materials. In the fields of finance and accounting, capital is often used to represent financial wealth, especially financial assets used to do business and start businesses. In a broad sense, capital can also be used as a collective term for various socio-economic resources that create material and spiritual wealth.

Capital Operation

Operational and management activities on capital and its movements with the purpose of maximizing capital growth. It has two meanings: First, capital operation is an important way for society to allocate resources under the market economy. It optimizes the structure of society's resource allocation through the flow of resources above the capital level. Second, from a micro perspective, capital operation is achieved through the use of market laws and regulations through the technical operation of capital itself.

The formation of property rights theory can be traced back to the paper "The Nature of the Enterprise" published by Coase in 1937. In 1960 he published another paper on "Social Costs", which gradually formed a new school of institutional economics and put forward concepts such as property rights, transaction costs, and agency costs. The emergence of this theory has deepened the understanding and research of business in economics, which has also promoted the in-depth study of capital operation issues.

Organizers:

Expansion capital operation model

Capital expansion refers to the

The goal of capital operation is to achieve the maximum value-added method of capital. For companies, the maximum capital appreciation can be expressed as:
(One)

Capital operation refers to the realization through the purchase, sale, transfer, merger, custody and other activities of monetized assets.

The first stage is commercial operations. We obtain currency through products, technologies, services, etc. We call it the commercial market. The commercial market looks at the currency assets and makes a lot of money at a glance;

The second stage is the capital market, which includes equity shares. It is a currency market, and the stock market is essentially a gambling market. The company enters the stock market through listing, and this market is to see the flow of assets on the books;

The third stage is the operation of Zhixin. When the assets reach a certain level, the entrepreneur pursues a ideological operation and goes to the religious market and the charity market. This is the highest state of capital operation.

Features of capital operations 1. Value-added. 2. Liquidity. 3. Risk. 4, profitability. 5. Diversity.

The role of capital operations: accelerate the reform of Chinese state-owned enterprises, accelerate the optimization of economic structure, and improve China's international competitiveness.

From the perspective of business operation methods, capital operations also have the following functions:

1. Capital operations can optimize the capital structure of an enterprise.

2. Capital operations can drive companies to quickly open markets and expand sales channels.

3. Capital operation can allow enterprises to obtain advanced production technology and management technology.

4 Discover new business opportunities.

5. Capital operation can bring a lot of capital to the enterprise.

Book information

Capital Operation Title: Capital Operation (Second Edition)

Author: Xiao Shengping

Publisher: China Textile Press

Publication time: 2010-12-1

Folio: 16

Price: 32.00 yuan ^[1]

Introduction to capital operation content

The enterprise effectively operates all tangible and intangible stock capital that it owns through various methods such as flow, optimized allocation, etc., and becomes activated capital that can add value to maximize the goal of capital appreciation.

This book will tell from the aspects of enterprise internal financing, commercial credit financing, bank channel financing, equity financing, international trade financing, and policy financing, and propose practical solutions.