fungible


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Related to fungible: Fungible things

Fungibility

The state of being interchangeable. For example, money has fungibility because there is no difference between one dollar and another dollar. Likewise, stocks of the same type in the same company and commodities of the same quality are generally fungible. On the other hand, assets like land or baseball cards are not fungible because each unit has unique qualities that add or subtract value.

fungible

Of or relating to assets that are identical in quality and are interchangeable. Commodities, options, and securities are fungible assets. For example, an investor's shares of Xerox left in custody at a brokerage firm are freely mixed with other customers' Xerox shares. Likewise, stock options are freely interchangeable among investors, and wheat stored in a grain elevator is not specifically identified as to its ownership.

Fungible.

When two or more things are inter-changeable, can be substituted for each other, or are of equal value, they are described as fungible.

For example, shares of common stock issued by the same company are fungible at any point in time since they have the same value no matter who owns them.

Forms of money, such as dollar bills or euros, are fungible since each can be exchanged or substituted for another of the same currency.

Similarly, put and call futures contracts on the same commodity that expire on the same date are fungible since a contract to buy -- a call -- can offset, or neutralize, a futures contract to sell -- a put.

On the other hand, multiple classes of the same stock may not be fungible. For example, in some markets citizens of the country are eligible to buy one class of stock and noncitizens a different class. Typically, the shares have different prices and may not be exchanged for each other.

References in periodicals archive ?
Which is pretty remarkable because you never really hear a buyer walk into a vendor show space and ask, "Can I see your new fungibles this season?
The problem is that the reversed ABC system cannot cope with the fungible nature of supervision and setup.
Specifically, one might assume that a recipient has the ability to transform a fraction of a categorical grant into pure fungible resources while the remaining fraction reduces the price of purchasing or providing the aided activity.
The two issues of bonds will be fully fungible, carry a coupon of 5.
After the fortieth day following the date of delivery of the Notes, certain selling restrictions will terminate with respect to the Notes sold pursuant to Regulation S of the Securities and Exchange Commission (the "SEC") and those Notes will become fully fungible with the Previously Issued Notes.
It is important for brokers to emphasize that all homes are not equal and that real estate is not fungible.
This approach is based on the principle that money is fungible.
But it is also, in this era of globalization, extremely fungible.
Wellstone doesn't make this case, however, preferring instead to rely on mushy talk of grassroots organizing, and trotting out fungible polling data that suggest voter fondness for liberal causes (never mind that Wellstone proudly says he boycotts meetings of Senate Democrats where pollsters will be speaking).
The dates of all three manufactured celebrations are fungible, with different promoters declaring various days to be the "official" one.
In her case, feminist values were as fungible as the president's own.