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Fungible: Difference between revisions
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*'''Not fungible''': Securities from different series, even if issued by the same issuer, are ''not'' fungible with each other. | *'''Not fungible''': Securities from different series, even if issued by the same issuer, are ''not'' fungible with each other. | ||
*'''Fungible''': Individual securities comprising part of a single series (and having a the same [[ISIN]] ''are'' fungible with each other. | *'''Fungible''': Individual securities comprising part of a single series (and having a the same [[ISIN]] ''are'' fungible with each other. | ||
There is a great divide in the bedeviling pedantry of law, the between things that are the ''same'' but somehow ''different'', and things that are ''different'' but nonetheless precisely the same. [[Amend]]ment describes that first class; [[fungibility]] the second. | There is a great divide in the bedeviling pedantry of law, the between things that are the ''same'' but somehow, over a period of time, ''different'', and things that are ''different'' but nonetheless at a given point in time, precisely the same. [[Amend]]ment describes that first class; [[fungibility]] the second. | ||
===Definition=== | ===Definition=== | ||
Assets are fungible where their nature allows them to be replaced in whole or in part with other assets of a like nature. However, it applies only to the equivalence of each unit of a commodity with other units of the same commodity. Fungibility does not describe or relate to any exchange of one commodity for some other, different commodity. | Assets are fungible where their nature allows them to be replaced in whole or in part with other assets of a like nature. However, it applies only to the equivalence of each unit of a commodity with other units of the same commodity. Fungibility does not describe or relate to any exchange of one commodity for some other, different commodity. | ||