Here are some examples of encashment:
* Cashing in a bond: When you hold a bond and it matures, you can "encash" it by receiving the principal amount plus any accrued interest.
* Exercising a stock option: If you have a stock option, you can "encash" it by buying the shares at a predetermined price and then selling them in the open market.
* Selling a share certificate: When you sell a share certificate, you're effectively "encashing" it for cash in the stock market.
* Cashing a check: This is a simpler form of encashment, where you convert a written promise to pay into actual cash.
In general, encashment involves:
* Converting an asset or right into cash.
* Usually involves a transaction with a financial institution or other party.
* Can be done for various reasons, such as needing cash for immediate expenses or realizing a profit.
So, in essence, "encashment" is the act of turning something into cash, allowing you to access its value in a readily usable form.