CAP, short for “capacity,” refers to the maximum amount or limit that something can hold or contain. It can also refer to the ability or potential of a person or thing to achieve or produce something. In finance, CAP can stand for “capitalization,” which is the total value of a company’s stock or assets. In the military, CAP can stand for “combat air patrol,” which is a defensive aerial mission to protect a specific area. Overall, CAP is a versatile term that can be used in various contexts to describe the extent or limit of something.