cap

In finance, a "cap" generally refers to a maximum limit set on the amount of interest or payments that can be charged on a loan or financial product. For example, an interest rate cap on a variable-rate loan prevents the interest rate from rising above a certain level, protecting borrowers from unexpectedly high payments. In investment or blockchain contexts, a "market cap" (short for market capitalization) measures the total value of a company's outstanding shares or a cryptocurrency's total worth by multiplying the current price by the total units available. It offers a quick way to gauge the size and relative importance of a financial entity.