Acronym for Convertible Adjustable Preferred Stock. The interest rate on caps is adjustable and is pegged to Treasury security rates. They can be exchanged at par value after next period's dividend rates are revealed for common stock or cash.
CAPS
Meaning of CAPS in English
Campbell R. Harvey. Hypertextual finance English glossary. Английский словарь гипертекстовых финансов. 2012