fungible

adj.

1. Law. Returnable or negotiable in kind or by substitution, as a quantity of grain for an equal amount of the same kind of grain.
2. Interchangeable.

n.
Something that is exchangeable or substitutable. Often used in the plural.

[Medieval Latin fungibilis, from Latin fungī (vice), to perform (in place of).]

fungibility fun'gi·bil'i·ty n.

Go ahead, argues New York Times columnist Thomas Friedman. Let Chinese oil company Cnooc buy Unocal, a US oil company, he says:

"Oil is fungible. It is all one global market. And if China wants to overpay for a second-tier U.S. energy company, that's China's business."

Link: Joined at the Hip

Posted July 21, 2005.

See our Word Overheard blog to see interesting uses of strange words.

Financial instrument equivalent in value to another, and easily exchanged or substituted. A dollar bill loaned has the same value as a dollar paid back. Bearer securities and stocks issued in the same class have this quality, as well as exchange traded options and mortgages in a pool of loans supporting a mortgage backed security.

This entry contains information applicable to United States law only.

A description applied to items of which each unit is identical to every other unit, such as in the case of grain, oil, or flour.

Fungible goods are those that can readily be estimated and replaced according to weight, measure, and amount.

1) being of such a nature that one part or quantity may be replaced by another equal part or quantity in the satisfaction of an obligation  oil, wheat, and lumber are fungible commodities
2) interchangeable