The capital movement is based on the micro and macroeconomic environment and is based on the economic activities of enterprises and state-owned enterprises. The movement of principal shows several regularities in its connection with macro and micro economic conditions. Principal movement is closely linked to economic activities in all aspects of society. Therefore, the principal movement and the social capital movement (including finance, credit and social security fund movements, etc.) are interdependent and mutually restrictive. On the one hand, principal movement is the basis of social capital movement. The smooth progress of principal movement ensures the formation and early realization of commodity value, laying the foundation for the smooth progress and expansion of social capital movement. Only when enterprise income increases and economic efficiency improves can fiscal revenue increase, bank loans can be returned in a timely manner, and insurance funds can be paid in full. On the other hand, the scale and structure of social capital movement, in turn, restrict the scale and structure of principal movement. The growth of fiscal and credit funds provides conditions for the growth of corporate capital; the proportion of fiscal and credit funds allocated to fixed asset investment and increased working capital directly affects the structural changes of corporate fixed funds and working capital. The raising and distribution of insurance funds also play a positive role in ensuring the normal movement of principal and preventing unexpected interruptions.

There is a certain deviation between the capital movement and the social capital movement. The two show some opposite changes in quantity changes and time occupation due to various specific reasons. Principal movement is relatively independent. For example, when the total amount of funds in the national economy is constant, there is an increase and decrease relationship between the amount of enterprise funds and the amount of social funds; when an enterprise raises funds and investments from the securities market or accumulates funds internally, or offsets property losses on its own (Reducing shares of a joint-stock company), the capital of the enterprise will increase or decrease, but social funds will not necessarily increase or decrease; the time for the enterprise to occupy the unpaid dues will be lengthened, and the period for repaying bank loans will be extended, which will cause the society to occupy the funds for a longer period of time shorten etc. The consistency between principal movement and social capital movement is derived from the function of national macro-control under the conditions of socialist market economy. As the social administrative manager of the national economy, the state has the right to use various economic levers (such as finance, credit, insurance, etc.) to participate in the distribution and redistribution of social products and national income, thereby causing funds to flow between enterprises and relevant social capital departments. Various forms of convection occur. The divergence between corporate capital movement and social capital movement stems from the status of an enterprise as an economic legal person that operates independently and is responsible for its own profits and losses. In order to carry out production and operation activities independently, an enterprise must not only raise funds from the social capital department, but also accumulate a part of its own funds from after-tax profits, causing independent increases and decreases in the enterprise's principal. This law determines that corporate finance is not only related to finance, credit, and insurance, but also different from and independent of each other. On the one hand, it requires a comprehensive balance between corporate principal and financial funds, credit funds, and insurance funds, and requires the state to strengthen macro-control of corporate funds; on the other hand, the state should also respect the financial rights of enterprises to operate independently and safeguard the legitimate interests of enterprises. Indiscriminate intervention. The production and operation process of an enterprise is the unity of material movement and principal movement, and there is consistency between material movement and principal movement. First of all, material movement is the basis of principal movement. The existence of material movement generally determines the existence of principal movement. This is because the use value of commodities is the material bearer of value, and a certain amount of principal always exists attached to a certain amount of materials. Due to the purchase and sale of materials and supplies, the purchase and construction of fixed assets and the increase or decrease in fixed assets, the investment, recovery and form changes of principal are caused. The quality of material movement basically determines the quality of principal movement. Only when materials and supplies are purchased in a timely manner, stored reasonably, and sold quickly can an enterprise's capital turnover be accelerated; otherwise, the movement of principal will be blocked and turnover will be sluggish. Only when it is objectively possible to expand the scale of material movement will there be requirements for the expansion of the scale of corporate capital movement. Secondly, principal movement reflects material movement, and in turn restricts the scale and structure of material movement. This is because corporate capital serves as a means of purchase and payment, and its raising is often preceded by the acquisition of materials and becomes the precursor to the movement of materials. The distribution ratio of enterprise capital also restricts the formation and structure of various production and operation factors (such as materials, equipment, labor force, etc.). The expansion of the scale of corporate capital movement, in turn, provides conditions for the expansion of the scale of material movement. Moreover, the speed of corporate capital movement is a sensitive indicator of the quality of material movement.

Through the inspection and analysis of the movement of principal, problems existing in the supply, production, and marketing of material movement can be revealed, so that materials can be managed and used rationally and the economic benefits of the enterprise can be improved.

There is a certain deviation between the movement of corporate capital and the movement of materials. The two will show inconsistencies in time sequence and quantity changes due to various reasons. First of all, from the perspective of the internal production and operation activities of the enterprise, due to the extensive use of commercial credit means, when legal credit sales and prepayment methods are used, the movement of materials often precedes or follows the movement of principal; due to the transfer of fixed asset value and physical renewal The separation in time will lead to the phenomenon that the capital movement is separated from the material movement at a certain time; the distribution of the enterprise's net income and the transfer to the finance, from the perspective of the enterprise, there is a capital movement but no material movement. In addition, when property and material losses occur due to various subjective and objective reasons and are not dealt with financially, there will be a phenomenon of virtual principal but no material. Secondly, when enterprises participate in the investigation of capital market activities, they are purely capital raising or investment activities, with capital movement but no material movement. The deviation between principal movement and material movement is one of the objective reasons for the existence of financial management as an independent functional management. Financial management plays an independent functional role by making reasonable use of various deviations to seek advantages and avoid disadvantages.

The consistency between the movement of corporate capital and the movement of materials is determined by the unity of commodity use value and value; the divergence between the two is determined by the relatively independent movement of value. . The capital movement of an enterprise is a complex economic mechanism. Whether the principal movement is smooth and whether good benefits can be achieved is restricted by the coordination and balance between the various parts within the mechanism. From the perspective of principal ownership, there must be an appropriate proportional relationship between corporate capital, borrowed funds and internal accumulated funds, so that financing costs and financing risks can be better unified. From the perspective of capital utilization, appropriate proportions must be maintained between internal investment and external investment, between long-term investment and short-term investment, and between fixed funds and working capital. Only in this way can we not only ensure the capital needs of the enterprise's internal production and operation activities, but also make full use of temporarily idle monetary resources to make profits in the capital market; and ensure the reasonable formation of various production and operation factors within the enterprise. From the perspective of the comprehensive balance of principal ownership and use, the income and expenditure of principal must be coordinated and balanced in terms of time and amount, so that the end point of one capital cycle and the starting point of the next capital cycle are closely connected.

The comprehensive balance of an enterprise's principal movement is determined by the objective requirements for coordination and balance between the enterprise's internal investment and external investment, between the various production and operation factors of the enterprise, and between all links in the production and operation process. of. This law requires, on the one hand, that principal movement be based on the internal coordination and balance of the enterprise's purchasing, production, sales activities and external investment activities; on the other hand, it requires finance to promote the internal production and operation activities of the enterprise by organizing the comprehensive balance of principal movement. and coordinate all aspects of foreign investment activities and play its comprehensive regulatory role. This rule is an important basis for making correct financial decisions. The comprehensive balancing method is one of the basic methods of financial decision-making. From the perspective of the internal production and operation activities of the enterprise, the principal is initially in the form of monetary funds at the starting point of the purchase stage. After purchase, it is transformed into the value form of production and operation materials (such as fixed assets, materials and supplies, etc.), and through the production stage, it is transformed into the value of commodities. After the sales stage, it returns to the monetary capital form. From the perspective of corporate external investment activities, the principal is converted from currency to securities through securities purchases, and then converted into currency through securities sales. Due to the different value turnover methods of fixed assets and current assets, fixed funds and current funds also show their own characteristics in terms of the continuous coexistence of principal movement. The movement of working capital has the characteristics of one-time transfer of value, consumption and compensation, and one turnover is completed in one reproduction process; the movement of fixed capital has the characteristics of successive transfer of value, consumption and compensation, and the turnover can be completed in several reproduction processes. Although the specific ways in which fixed funds and circulating funds move are different, the spatial coexistence and temporal continuity of various fund forms are the same. The coexistence and continuity of principal movement are prerequisites for each other's existence. Due to the coexistence of various principal forms at the same time, each part of the principal has the possibility of mutual transformation; on the other hand, the juxtaposition itself is the result of mutual transformation. Once the continuity of the movement of principal is interrupted, the next stage of The principal form no longer exists.

The continuity and coexistence of the capital movement of an enterprise is determined by the continuity and stage characteristics of the enterprise's production and operation activities themselves.

The continuous progress of production and operation activities, the continuous formation, consumption and transformation of various production and operation factors into production and operation results, and finally the realization of their value through sales will inevitably cause the funds advanced on production and operation factors to continue to undergo form transformation, and the movement cannot be interrupted. The staged nature of production and operation activities causes the principal occupied by each stage to exist side by side in space. This law of corporate principal movement requires that financial organizations must not only continuously raise principal, but also reasonably allocate funds in stages according to the principal occupation structure and changes of each occupation form, and continuously take measures to ensure the principal. Normal circulation turnover speeds up the speed of principal turnover and improves the utilization effect of principal.

The above-mentioned principal movement laws are examined from the overall perspective of principal movement. Various principals have their own regularities in different stages and fields of movement, which will be examined in detail in subsequent chapters of this book. The law of principal movement has important theoretical and practical significance for determining financial management principles and methods. Comprehensively studying the laws of principal movement is the basic point for building financial disciplines.