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If an asset is fungible, then all that means is it has the same terms, conditions, and rights as other assets in the same pool. Hence, one asset can be substituted or exchanged for another asset freely. Eg, the additional issue of ordinary shares of a company are fungible to the ordinary shares that are currently issued in the market.

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Q: What is fungible mean in Term of financial?
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If something is fungible it can be broken into pieces without losing much of its value. Something is fungible or it is not. Gold can be melted down and split into smaller bars with no loss of value, therefor it is fungible. Gasoline is fungible, you can sell two half gallons for the same price as a single gallon. A race horse is not fungible. An iPod is not fungible. A rare coin is not fungible. You're not fungible. Hope this helps.


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