Cap

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Related to Fibrous cap: atheroma, fibrous capsule, Foam cells

Cap

An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM). Also, an OTC derivatives contract consisting of a series of European interest rate call options; used to protect an issuer of floating-rate debt from interest rate increases. Each individual call option within the cap is called a caplet. Opposite of a floor.

Cap

1. Informal for market capitalization.

2. In a floating-rate note or an adjustable-rate mortgage (ARM), the highest possible interest rate. For example, if one has an adjustable-rate mortgage on a house, the interest rate fluctuates periodically. However, if the homeowner has a cap on the interest rate, there is a guarantee that it will never rise above a certain percent, no matter what the ARM formula would otherwise dictate. A cap is designed to protect the person or company making the interest payments. See also: Floor, Collar.

cap

1. An upper limit on the interest rate to be paid on a floating-rate note.

Cap.

A cap is a ceiling, or the highest level to which something can go.

For example, an interest rate cap limits the amount by which an interest rate can be increased over a specific period of time. A typical cap on an adjustable rate mortgage (ARM) limits interest rate increases to two percentage points annually and six percentage points over the term of the loan.

In a different example, the cap on your annual contribution to an individual retirement account (IRA) is $4,000 for 2006 and 2007 and $5,000 in 2008, provided you have earned at least that much. If you're 50 or older, you can make an additional catch-up contribution of $1,000 each year.

CAP

see COMMON AGRICULTURAL POLICY.

cap

A ceiling on the adjustments that can be made in the payments or interest rate of an adjustable-rate loan.

Cap

Same as Float-Down.

References in periodicals archive ?
Detection of lipid pool, thin fibrous cap, and inflammatory cells in human aortic atherosclerotic plaques by near-infrared spectroscopy.
In addition, monocyte adhesion to the activated and dysfunctional endothelium allows the formation of macrophage-derived foam cells, which subsequently produce MMPs that degrade and weaken the fibrous cap and make the lesion more susceptible to plaque rupture.
The system allows measurement of the arterial wall and other structures with depth resolution of approximately 15 microns, allowing precise characterization of tissue composition and differentiation of important tissue aspects such as calcification, fibrous cap thickness, necrotic pool size, and lipid density.
In addition to causing gum disease, MMPs thin the fibrous cap overlying atheromatous plaque, thereby increasing the risks of acute MI and unstable angina in patients with coronary artery disease.
Their analysis demonstrated that laser speckle imaging (LSI) is capable of providing information correlated with plaque type, collagen content, lipid pool area, and fibrous cap thickness -- all thought to be important indicators of plaque vulnerability.
Optical coherence tomography "for the first time enables us to identify the large lipid core and thin fibrous cap so characteristic of the unstable plaque," Dr.
Fibrous cap appearance is the most important feature for determining prognosis, Dr.
This new investment makes it possible to create detailed images of fatty structures that are typically nonfluorescent, such as the fibrous caps responsible for atherosclerosis and the myelin sheath surrounding nerve structures.