A good or asset's interchangeability with other individual goods/assets of the same type. Assets possessing this property simplify the exchange/trade process, as interchangeability assumes that everyone values all goods of that class as the same.

Many diverse types of assets are considered to be fungible. For example, specific grades of commodities, such as No.2 yellow corn, are fungible because it does not matter where the corn was grown - all corn designated as No.2 yellow corn is worth the same amount.

Cross-listed stocks are considered fungible as well because it doesn't matter if you purchased a share of XYZ stock in its home country or in a foreign country; it should be accepted at either location as XYZ stock.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Fungibility — is the property of a good or a commodity whose individual units are capable of mutual substitution. Examples Examples of highly fungible commodities are crude oil, precious metals, and currencies.Fungibility has nothing to do with the ability to… …   Wikipedia

  • fungibility — The substitutability of listed options , which is dependent upon their common expiration dates and strike prices. The congruence of expiration dates and strike prices lets investors close positions by offsetting transactions through the options… …   Financial and business terms

  • fungibility — noun see fungible II …   New Collegiate Dictionary

  • fungibility — See fungible. * * * …   Universalium

  • fungibility — noun the property of a good or a commodity whereby individual units are capable of mutual substitution …   Wiktionary

  • fungibility — n. (Law) condition of being replaceable (about merchandise) …   English contemporary dictionary

  • fungibility — fun·gi·bil·i·ty …   English syllables

  • fungibility — /ˌfʌndʒə bɪlɪti/ noun being exchangeable for something similar …   Dictionary of banking and finance

  • fungibility — noun the quality of being capable of exchange or interchange • Syn: ↑exchangeability, ↑interchangeability, ↑interchangeableness • Ant: ↑unexchangeability (for: ↑exchangeability) …   Useful english dictionary

  • fungible — fungibility, n. /fun jeuh beuhl/, adj. Law. (esp. of goods) being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind. [1755 65; < ML fungibilis, equiv. to L fung(i) to… …   Universalium

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