Financial innovation has become crucial to driving global economic growth and improving society, but, as the past few years have demonstrated, when financial innovation is misunderstood or mismanaged, it can have disastrous consequences. In this practical, accessible book, two renowned experts explain how sophisticated capital structures can enable companies and individuals to raise capital in larger amounts for longer terms and at lower cost, bridging capital gaps and accomplishing tasks that would otherwise be impossible. They outline the background and history of financial innovation, showing how new instruments have evolved, and how they have been used and misused. They thoroughly demystify complex capital structures, presenting a practical toolbox for anyone who needs to raise capital for either private or public purposes. Readers will learn why capital structure matters; how to analyze capital structures; and how to avoid the potentially catastrophic pitfalls of financial innovation. The authors present clear, thorough discussions of the current role of financial innovation in capitalizing business, housing, cities, regions, nations, and new ideas. They conclude with a full chapter of crucial lessons learned in financing the future. This is the first book in a new series on financial innovation that is a collaboration between Wharton School Publishing and Milken Institute. Future titles will focus on specific policy areas such as health care and energy.