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Capital injection refers to the parent company of a listed company injecting some assets into the listed company, and some powerful shareholders or parent companies have the conditions to speculate on the concept of capital injection, which has a positive effect on the stock price.
Investment refers to the process by which a state, an enterprise or an individual signs an agreement with the other party for a specific purpose to promote social development, achieve mutual benefit and transfer funds. It is also an economic behavior in which a specific economic entity invests a sufficient amount of funds or monetary equivalents in kind into a certain field in a certain period of time in order to obtain income or capital appreciation in the foreseeable period in the future.
1. The difference in range.
The scope of investment is broader than capital injection, and in economics investment is the investment of resources for production. In financial terms, investing means buying** or other financial or paper assets. Whereas, capital injection only exists financially, whether it is invested or reinvested.
2. The difference in process.
The former is to invest money in the enterprise and obtain a certain profit through production and business activities. The latter is the purchase of ** and corporate bonds issued by enterprises with money.
Indirect participation in the profit distribution of the enterprise.
3. Conceptual differences.
"Capital injection" is generally aimed at projects that have already been invested, which is an act of increasing investment, while "investment" is mostly aimed at new projects. There are multiple sources of capital injection and investment**, such as fiscal funding.
Treasury bonds, bank loans.
and so on, it is necessary to divide whether it is paid or not according to the nature.
Encyclopedia - Funding.
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The scope of investment is a bit broader than capital injection.
In economics, investment refers to the use of resources for production.
In financial terms, investing means buying** or other financial or paper assets.
Whereas, capital injection only exists in the financial aspect, and it means to invest or reinvest.
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Investing is throwing money into someone else's company in exchange for shares!
Capital injection is generally an increase in investment by the parent company in its subsidiaries and by major shareholders in its own company;
One is to invest money in other people's companies, and the other is to invest money in your own companies and projects!
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The explanation of capital injection is to invest a large amount of money in a project or a certain undertaking.
Funding means investment or reinvestment. Funding is based on earnings prospects, return on investment.
Return on equity, of course, business risk, political risk, market, investment environment, partner credit, etc. should also be considered.
Capital injection from another point of view, that is, "requiring capital injection", for example, the listed company's empty dust allotment of shares to raise funds, is what happens when the stock price is more cautious than the fight, commonly known as "absorbing water" to the market, is one of the financial skills, small shareholders are most afraid, because agreeing to inject capital is contrary to the principle of "diversification", and if you do not accept it, your equity will be amortized.
Difference Between Capital Injection and Stake:
The difference between capital injection and equity investment is as follows: Capital injection refers to the investment of a large amount of money for a project or a certain enterprise. Shareholding refers to the original acquisition of shareholder rights after the establishment of the company.
Employees of the company can also become shareholders, which means that the company provides various favorable conditions to enable employees to obtain the best of the enterprise and become shareholders of the enterprise.
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The registered capital of a company is the amount of capital registered by the company's registration authority, also known as authorized capital. The registered capital is the amount of property granted by the state to the enterprise law for operation and management or the property owned by the enterprise legal person.
Legal basis: Company Law of the People's Republic of China Article 80 If the shares are established by initiation, the registered capital shall be the total amount of share capital subscribed by all the promoters registered with the company registration authority. Before the promoter's share of the shares subscribed by Huixian is fully paid, it is not allowed to raise shares from others.
If the shares are established by way of raising, the registered capital shall be the total paid-in share capital registered with the company registration authority. If laws, administrative regulations and decisions have other provisions on the paid-in registered capital and the minimum amount of registered capital of shares, such provisions shall prevail.
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The capital injection method is the capital contribution method, which refers to the form of capital investment registration for a company or enterprise.
It also means that although theoretically any type of property can be used for capital contribution, the form of capital contribution that is not expressly stipulated should be judged according to whether the capital contribution property meets the subject matter conditions of the current capital contribution. That is, the subject matter must be certain, existential, possible for value assessment, and independently transferable before it can be used for capital contribution.
Types of capital contribution forms (capital contribution methods):
There are several ways to inject funds:
First, currency. Setting up a company necessarily requires a certain amount of liquidity. to cover expenses when creating a company and to start company operations. As a result, shareholders can contribute capital in monetary terms.
Second, physical objects. In-kind contributions are generally made in the form of machinery and equipment, raw materials, spare parts, goods, buildings and plants.
Third, intellectual property rights. The so-called intellectual property rights refer to the civil rights that people enjoy in the fruits of their intellectual labor. Traditional intellectual property rights include trademarks, patents, and copyrights.
Fourth, land use rights. There are two ways for a company to obtain land use rights: one is for shareholders to make capital contributions to the company after using the land use rights as a price to enable the company to obtain land use rights; The other is that the company applies to the local county and municipal land management department, and after review and approval, obtains the land use right through the subscription contract, and the company pays the site use fee in accordance with the regulations. The former is the form of capital contribution by shareholders, but the relevant procedures must be fulfilled in accordance with the law.
Fifth, labor and credit contributions. Although China's "Company Law" does not explicitly prohibit shareholders from making capital contributions with labor services and credit, from the perspective of the targets of shareholders' capital contributions listed in China, China does not allow shareholders to contribute capital to **** and shares with labor and credit. Article 16 of China's Partnership Enterprise Law stipulates that:
Partners may contribute capital in money, in kind, land use rights, intellectual property rights or other property rights, or they may contribute capital with labor services. It can be seen that a partnership can be funded by labor services.
It's the way you want to invest in the company. The investment methods are diverse, including intangible assets such as cash, equity, technology, etc., and can also include tangible assets such as land, equipment, minerals, and physical objects, which can only be used as a way to inject capital if the general meeting of shareholders confirms it.
This is an economic behavior, which refers to the participation of the first person in the business activities, the first from the financial funds to operate, usually the vast majority of the shares, and according to the shares, the person appointed as the chairman or other person in charge of the position, the capital and operation are supervised.
**The capital injection is multifaceted, there are capital injections for the construction of key projects, capital injections for the transformation, upgrading, expansion and reproduction of large and medium-sized state-owned enterprises, and capital injections for a public welfare undertaking or people's livelihood project.
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Hello, whether it is a direct investment in the name of an individual, or a collective way of shareholding, most of them are on time whether it is a private placement of funds, which belongs to the unspoken rules of the industry.
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It's just that you think your own funds are less, and you want to invest in it again, which is called capital injection; There are many ways to inject capital, including direct cash injection, capital injection of raised funds, capital injection of equipment, capital injection of technology, etc.
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