Fungibles
Categories: Company Management, Derivatives
When something is fungible, it means it's pretty much identical to something else and can be exchanged for it without any drama or hassle. One common example of this is cash.
Ever gone into a convenience store and asked for change for a twenty-dollar bill? You give the cashier the twenty, and they give you, say, a ten, a five, and five ones back. No one bats an eye or feels like they’re getting the raw end of the deal because $20 is $20, whether it’s a twenty-dollar bill or a collection of smaller bills that add up to twenty dollars. Fungibility.