The term 'CAP' is a three-letter word that is commonly used in the business world. It is an acronym for 'capitalization and trade, ' which refers to the process of raising capital and trading stocks or other financial instruments. Capitalization is the process of raising money by issuing shares of stock or other securities, while trading involves buying and selling securities on the open market. The term 'CAP' is also used to refer to the maximum amount of money that can be raised or traded in a given period of time.