Legal Dictionary

fungible example

Example Sentences From The Web For Fungible

In a broader sense, fungibility is the ability to substitute one unit of a financial instrument for another unit of the same financial instrument. This works with paper money when you swap your dollar for someone else’s.

Why Diamond has no resale value?

The reason resale prices for diamonds are so low compared with retail prices is that jewelers buy diamonds in bulk, at wholesale prices, which are much lower. The retail price you pay for a diamond at the store is higher because it includes overhead expenses, such as rent and personnel salaries.

Create Fungible And Non

What’s more, your shares are worth exactly the same as those of any other stakeholder of the same company and share type, in the same quantity. You may obtain a copy of the Preliminary Offering Circular and the offering statement in which such Preliminary Offering Circular was filed with the SEC by clicking here. No money or consideration is being solicited by the information in this or any other communication and, if sent, money will not be accepted and will be promptly returned. No offer by a potential investor to buy our securities can be accepted and, if made, any such offer can be withdrawn before qualification of this offering by the SEC. As with most blockchain topics, NFTs are complex and varied, and there’s endless further readings and opinions out there. But the torch has now been passed in terms of the basics, and, most importantly, you know about Cryptokitties…we can now sleep soundly tonight here at the WBS.

  • Further application of non-fungible tokens could be certification such as for qualifications, software licensing, warranties, and even birth and death certificates.
  • We’ll also look at some of the latest token standards, how they are implemented, and what gives them value.
  • This week we explore a topic that at first glance may seem oxymoronic, non-fungible tokens, but it turns out there are unique advantages to unique tokens.
  • In this article, we’ll explore some of the key use cases for non-fungible tokens.
  • The smart contract of a non-fungible token immutably proves the identity of the recipient or owner and could be stored in a digital wallet for ease of access and representation.
  • First and foremost, however, we need to take a look at what blockchain technology actually is.

Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. For instance, because individual diamonds have different cuts, colors, sizes, and grades, they are not interchangeable, fungible example so they cannot be referred to as fungible goods. Fungible goods are not necessarily liquid—meaning that you can easily exchange something for money or another item. A commodity must be fungible before it can be traded on a commodities exchange.

Fungible financial instruments are often used in arbitrage trades. In arbitrage, a trader takes advantage of a price difference in two different markets, buying at a lower price in one market and fungible example selling at a higher price in the other market. There are many fungible financial instruments, with the most popular being stocks listed on multiple exchanges, commodities , and currencies.

“mental Accounting” May Lead To Poor Asset Location

The security and ubiquity of the blockchain would then guarantee the integrity of the ownership record, define how this could be transferred, and allow easy proof of ownership, among other things. Just like money, where no one cares about the serial numbers of their banknotes, or whether they are newly minted or 10 years old, no one cares whether you have a share certificate. Someone else who has bought 50 shares of the same company and type in the New York Stock Exchange for a total of £120 in one go will have the same type and quantity of shares as you.

In other words, they are goods that consist of many identical parts which can be easily replaced by other, identical goods. [fuhn-juh-buh l] See more synonyms on adjective Law. being of such nature or kind as to be freely exchangeable or replaceable, in whole or in part, for another of like nature or kind. They don’t have parts you can sell, everything is integral to their identity and what makes them valuable. The key aspect of futures is that they are fully standardized. Your merchandise has to be of a strictly defined quality, delivery dates and quantity batches are standardized and so on. When you buy a futures contract, it is perfectly exchangeable with another contract with all the same parameters.

Are Diamonds fungible?

Hard Assets
Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. For instance, because individual diamonds have different cuts, colors, sizes, and grades, they are not interchangeable, so they cannot be referred to as fungible goods.

I keep my expenses very low and can do quite well with just 36K a year. As a single person with only a small mortgage as my only debt, it’s very doable. One thing I haven’t figured out is how much cash can I generate via capital gains and or dividends before incurring tax? My tax rate at the moment is zero because I have zero earned income, and I want to keep it that way. Because money is fungible, it doesn’t matter if the loan is from a 401k or not.

fungible example

Other Words In The Neutral Category:

All of this is carefully monitored and recorded, and since the exact bars deposited to the New York Fed are the exact ones returned upon withdrawal, these types of gold deposits are not considered fungible. Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price. Money is a medium of exchange that market participants use to engage in transactions for goods and services.

Fungible trading works when you can buy/sell on one exchange, and sell/buy on another exchange, netting your share position to zero and earning a profit. From second to second, there may be small discrepancies, as the currency rate changes and the stock is subject to its own price changes from buying and selling pressures. But if traders see a large enough arbitrage opportunity to make a quick profit, they will step in. This pushes the under-priced market up and the over-priced market down , bringing the two markets back into equilibrium.

fungible example

is an online game where you collect, breed, and sell virtual cats and kittens. Each cat has its own genetic identification, just like a human’s DNA, created by the ‘Genetic Algorithm’ or GA. Users can also partake in governance to decide the direction of future developments within a game. This gives users the opportunity to design their own virtual world and operate within digitally verifiable in-game marketplaces. NFTs are helping to build a new virtual economy on the blockchain which is changing how gamers and art fans interact with their favorite past-times.

Fungible And Non

Information is from sources deemed reliable on the date of publication, but Robinhood does not guarantee its accuracy. For example, a foreign company may list American depositary shares on U.S. stock exchanges.

The benefits that blockchain brings to gaming are undeniable, however, mainstream adoption still seems a few years away. That being said, the gaming industry seems well equipped for such a transition, which would appear to be a natural one. Your crypto address is similar to your Instagram or Twitter handle, each name must be unique and different.

What is reverse fungibility?

The reverse fungibility of the depository receipts issued abroad by Indian companies is expected to narrow down the price differential between the same assets listed in the domestic market and the overseas market, thereby bringing down the opportunities of arbitrage.

According to royal decree No. 62, issued on 10 November 1967, depositors of fungible securities have the rights of co-ownership. This change was fundamental to the development of Euroclear, by then beginning to process Eurobonds and build systems. Fungibility is also important within the context of product liability. If the defendants fail to rebut the presumption of liability, they will be liable pro rata based on their market fungible example share during the relevant period. Depending on whether the interests of the aggrieved party are fungible, a determination made by the trier of fact, the appropriate remedy may change. For example, a court may require specific performance as a remedy for breach of contract, instead of the more favored remedy of monetary damages. The word fungibility comes from the Latin fungibilis, from the verb fungī, meaning “to perform”.

NFTs are different to cryptocurrencies, using different token standards and deploying different kinds of smart contracts . Since fungible example 2015 there are now many more blockchains that support smart contracts such as NEO, Hyperledger, Libra, and Hedera Hashgraph.

If type-safety is required or if you need to define custom properties on top of the tokenIdentifier and fractionDigits then it is still possible to create your own TokenType sub-type by sub-classing TokenType. If you wish to construct your token transaction using utility functions instead of using ready flows there are some steps that need to be performed to correctly finalise it. It is also possible to provide custom query criteria for token selection. All of the flows take observer parties/sessions as usual. Developer is responsible for generating confidential identities, finalisation and possible updating of distribution lists .

Instead, it gives the owner the right to shares held in an overseas bank. Most countries have their own stock exchanges, and businesses can list their shares on the exchanges of their choice. However, in the modern global economy, many people want to invest in companies across the globe. fungible example The fungibility of money refers to the fact that all money is the same. It doesn’t matter whether you have one $100 bill or one hundred $1 bills. In the same way, the source of your money doesn’t impact how you can use it. Another example of a non-fungible good is a trading card.

What security means?

noun, plural se·cu·ri·ties.
freedom from danger, risk, etc.; safety. freedom from care, anxiety, or doubt; well-founded confidence. something that secures or makes safe; protection; defense. freedom from financial cares or from want: The insurance policy gave the family security.

It is unrelated to the Latin and English noun fungus or its plural, “fungi”. The Federal Reserve Bank of New York offers gold custody services to central banks and governments around the world by storing gold bars in its underground fungible example vault. All of the gold bars deposited into the vault are weighed with precision, and the refiner and purity markings on the individual bars are inspected to confirm they match the depositor instruction sheets.

Michael Spitz , known most often as just "Spitz," is Editor-in-Chief of the Pixels & Pills and a prollific tweeter, blogger, and article writer, active in digital health across all specialties. Follow him @SpitzStrategy.



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