Inlösen

Inlösen, literally redemption, is a term used in finance and law to denote the process by which a financial instrument, a claim, or a contractual right is exchanged for cash or another asset, either at maturity, upon exercise, or under a contractual call or put provision. It marks the end of the instrument's existence or the realization of a right.

In debt financing, inlösen refers to the issuer redeeming a bond, debenture, or other redeemable instrument. At stated maturity or when a call option is invoked, the issuer pays the holder the redemption price, commonly equal to par value plus any accrued interest. The instrument is then cancelled and the investor's claim ends, subject to any accrued rights.

In corporate actions, inlösen can describe the exercise of subscription rights or warrants to acquire new shares. The holder pays the strike price and receives the underlying shares if the terms are met. In some markets, these rights are tradable until they are exercised.

In collateral or secured lending, inlösen denotes redeeming pledged collateral by repaying the debt, allowing the debtor to regain ownership of the asset. In consumer contexts, vouchers and gift cards are redeemed for goods, services, or cash equivalents according to the terms.

The precise meaning and procedures depend on the instrument's terms and applicable law, including redemption price, notice periods, and any fees for early redemption.