cap
noun [ C ]
FINANCE uk/kæp/ us [ C ]
an upper limit on the amount of money that can be spent or charged in connection with a particular activity:
a price/salary/spending cap
a cap on sth They called for the government to keep the cap on public-sector spending.
impose/remove a cap The letter of intent defined the work to be carried out and imposed a cap on cost.
[ C or U ]
abbreviation for capitalization :
We are investing in companies with an average market cap of $400 million.
See also
large-cap adjective
mid-cap adjective
small-cap adjective
cap
verb [ T, often passive ]
uk/kæp/ us-pp-to put an upper limit on the amount of money that can be spent or charged in connection with a particular activity:
Annual expenses on each fund will be capped at 1.25%.
See also
cap and trade