Due to significant changes that have taken place in the nature and essence of money and monetary value, and the dominance of interest-based debt financing, the nature of capital and sharing of profit and loss have become complex issues. The book analyses in detail the practical relevance of these in the operation of Islamic financial institutions, and attempts to provide some new insight on the relevant Shari’ah regulations. The book studies capital in joint ventures financed by Islamic banks, examining the Shari’ah requirement regarding existence and presence of capital at the outset of the venture in the context of modern money, and exploring the admissibility of converting debt into capital and equity ventures based on non-monetary capital. It scrutinizes the method currently used by Islamic banks for determining the profit sharing ratio between the bank and the client, and suggests possible alternatives in line with Shari’ah objectives. The author also discusses at length various clauses incorporated to modern equity financing agreements.