A cap can be a hat or something that provides some kind of protection or a seal.
- He always wears a baseball cap backwards.
- Did you put the cap back on the tube of toothpaste?
- Where the cap for the milk?
- The company put a cap on hiring at the beginning of the recession. (cap = a limit)
- Never use your teeth to remove a cap.
When the word "cap" is used as a verb, it usually means to limit the amount of something:
- The team capped his salary at two million dollars a year.
- The company capped the number of employees it was willing to hire for the year at no more than twenty.
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June 14, 2013