It is evident that the text can bear one meaning and it is that Khaatam-un-Nabiyyin stands for the Finality of Prophethood with a clear implication that the prophethood has been culminated and finalized in Hadhrat Mohammad (WAS).
It is not only the context that supports this interpretation but also the lexicography.
According to Arabic lexicon and the linguistic usage Khaatam means to affix seal; to close, to come to an end; and to carry something to its ultimate end.
Khaatama al-‘Amala is equivalent to ‘Faragha min al-‘Almali’ which means ‘to get over with the task.’
‘Khaatama al-Ina’ bears the meaning;
‘The vessel has been closed and sealed so that nothing can go into it, nor can its contents spill out.’
‘Khaatam-al-kitab’ conveys the meaning; ‘The letter has been enclosed and sealed so that it is finally secured.’
‘Khaatama-‘Ala-al-Qalb’ means;
‘The heart has been sealed so that it cannot perceive anything new nor can it forswear what it has already imbibed.’
‘Khitamu-Kulli-Mashrubin’ implies;
‘the final taste that is left in the mouth when the drink is over.’
Khaatimatu Kulli Shaiinn ‘Aqibatuhu wa Akhiratuhu means;
“The end in the case of everything denotes its doom and ultimate finish.
“Khatm-ul-Shaii Balagha Akhirahu” conveys the sense;
“To end a thing means to carry it to its ultimate limit.”
The term Khaatam-i-Qur’an is used in the similar sense and the closing verses of Qur’anic Surahs are referred to as Khawatim.
“Khaatim-ul-Qaum Akhirhuum” means; “The last man in the tribe.”
(Refer to Lisan-ul-‘Arab; Qamus and Aqrab-ul- Muwarid).
For this reason all linguists and commentators agree that Khaatam-un-Nabiyyin means;
‘The Last in the line of Prophets.’
The word Khaatam in its dictionary meaning and linguistic usage does not refer to the post office stamp which is affixed on the outgoing mail. Its literal meaning is the ‘seal’ which is but on the envelope to secure its contents.
Source: en.shafaqna.com