The M-C-M’ (M-money, C-commodity, M-money) movement of exchange, describes how capitalists transform money into capital (i.e. more money) through the process of production and exchange.

It begins with an initial amount of money, which the capitalist uses to buy commodities, that are then used to create new products (with more potential value than the investment). The capitalist then sells these goods for a higher amount of money (M’ plus m) to make a profit.

The second stage in building wealth, the capitalists turn money into capital by investing is to make more money. To get there, capitalists must also buy the means of production to allow labor power to function and to produce goods that can be sold for more than the cost of production and the initial investment and to create a surplus value (the added work performed by laborers beyond what is needed to produce the products which equivalent to their salary), the capitalist need to acquire 3 things: (1) buildings, tools and equipment, (2) raw materials and other supplies and, (3) labor power. The surplus value is considered profit for the capitalist. The surplus value is then reinvested, allowing the capitalist wealth to increase. This creates a cycle that, if profitable enough, allows the capitalists to keep, maintain and grow their wealth and economical power.