Fungible securities: a type of securities that are interchangeable with other securities belonging to the same class or series. In other words, it refers to such securities which are replaceable by others of the same features (series, class) without any impact on the rights attributable or attached to such securities. Fungibility is a feature of interchangeability either at the time of issue or shortly  thereafter, involving an already seasoned issue (by the same firm/ obligor).

In trading, fungibility implies the ability to buy or sell the same security/ instrument/ asset in two or more different markets. A financial instrument (such as a stock, bond, or futures contract) is considered fungible if it can be bought or sold on one market/ exchange, and then sold or bought on another market/ exchange. Fungible securities/ instruments take many forms with the most popular being stocks listed on multiple exchanges, debt securities, and securities on specific types of commodities (such as gold and silver), currencies, etc.

The main examples of fungible securities include:

• Shares of stock.
• Bonds.
• Options.
• Futures.