Financial Dictionary

This dictionary contains:
24549
financial terms

Cap




Cap

An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM).

RELATED TERMS
--------------------------------------

Interest
The amount of money a lender loans a borrower to pay for using the borrower's principal.

Note
Debt instruments with initial maturities longer than one year and shorter than 10 years.

Mortgage
A loan, usually to buy property, which serves as security for the loan; to take out a loan with a property as security.



SIMILAR TERMS
--------------------------------------



PREVIOUS AND NEXT TERMS
--------------------------------------

Callability
Feature of a security that allows the issuer to redeem the security prior to maturity by calling it in, or forcing the holder to sell it back.

Callable
Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually.

Called away
1) Convertible: Redeemed before maturity. 2) Option: Call or put option exercised against the stockholder. 3) Sale: Delivery required on a short sale.

Canadian agencies
Agency banks established by Canadian Banks in the U.S.

Cancel
To void an order to buy or sell from the floor, or the trader/salesperson's scope.

Cap

Capacity
Credit grantors' measurement of a person's ability to repay loans.

Capital
1) Assets used for the production of profits and wealth. 2) Owner's equity in a business.

Capital account
Net result of public and private international investment and lending activities.

Capital allocation decision
Allocation of invested funds between risk-free assets and the risky portfolio.

Capital asset
A long-term asset, such as land or a building, not purchased or sold in the normal course of business.

We thank you for using the Financial Dictionary to search for Cap. If you have a better definition for Cap than the one presented here, please let us know by making use of the suggest a term option. This definition of Cap may be disputed by other professionals. Our attempt is to provide easy definitions on Cap and any other medical topic for the public at large.
 

This dictionary contains 24549 terms.







ap / cp / ca / ccap / caap / capp / xap / sap / dap / fap / vap / ap / cqp / cwp / csp / cxp / czp / ca0 / ca- / ca[ / ca; / cal / cao / ca9 /