cap

cap definition - business

cap

  1. An upper limit on the interest rate or the adjustment to interest rates to be paid on a floating-rate note. A loan may have an annual cap and a lifetime cap.
  2. See capitalization.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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