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English definition of “cap”

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cap

noun [C]
 
 
/kæp/ FINANCE
[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 capa 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
(Definition of cap noun from the Cambridge Business English Dictionary © Cambridge University Press)
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