Fungibility

Fungibility (Latin fungi " Manage ", " accomplish ") is the property of goods, foreign exchange and securities to be easily replaceable. Fungible values ​​are determined not individually but by its type and can be replaced by other pieces of the same type and amount. The fungibility is the requirement for exchange trading and is created through the establishment of quality standards (practices ).

Financial Theory

In the theory of finance fungibility describes in an investment, how easy it is to convert a form of investment to another. The term " fungibility " therefore refers to the marketability of assets and rights. So are securities listed on a stock exchange, a very fungible investment because the investor can make them very easy to money or convert it into another form of investment. If an investor has, however, acquired specific machine or a property, it is much more difficult and complicated for him to make the investment reverse or change it; Therefore, this form of investment is less fungible.

Jurisprudence

In the jurisprudence fungibility refers to the availability of rights, title and ownership. Thus, shares in a company of civil law ( GbR ) or a limited liability company, as opposed to listed shares generally not fungible. Items are fungible, if they do not go beyond the material value of value and thus are equivalent replaceable, eg pure commodities, but not works with artistic or historical significance. Here are fungible items pursuant to § 91 BGB prerequisite for their fungibility. Finally, also known as genus debt pursuant to § 243 BGB by fungible goods can be met.