Using MAXSIZE to manage less available memory for multiple database in server

I have only 1 gb space in server.

And i have to keep 2 database there. 

1 want to specify 700 mb to DATABASE1 and remaingin 300MB to DATABASE2.

I used the following code 

ALTER DATABASE saurav_gautam_mashareqdb
MODIFY FILE
(
    NAME=N'saurav_gautam_mashareqdb',
    MAXSIZE=700MB
)

Now i would like to know what this code will do.

Will it stop storing data after the size reaches to 700mb? (that is what i want)

Please help