Earlier quoted context omitted.
That has nothing to do with legal fungibility, and everything to do with property rights, and the conditions at which most people expect to buy a stock (licensing notwithstanding). Fungibility is merely how easily the medium is broken into smaller parts that may be exchange for convenience, and not the regulated use of third parties, unless you're really talking about liquidity. The latter can easily be solved with w…
>Fungibility is merely how easily the medium is broken into smaller parts that may be exchange for convenience No, fungibility is whether an asset (ie. individual assets within a particular class of asset) is interchangeable with one another. It means when you deposit banknotes into your bank, whether the bank has to give you the same banknotes with the same serial number, or whether they can give you equivalent inst…
Of course. This is synonymous with my own explanation. However your take is that it means that after you've made it interchangeable, then the bank or exchange somehow automatically gets more rights over it. That just isn't the case. Unless there's an express prior agreement, it's also morally wrong.