A comedy in five acts, performed about 1596-97, printed in a quarto edition from "foul papers" in 1600. The Merchant of Venice is classified as both an early Shakespearean comedy (more specifically, as a "Christian comedy") and as one of the Bard's problem plays; it is a work in which good triumphs over evil, but serious themes are examined and some issues remain unresolved. Much less light hearted than Shakespeare's other comedies, the work is a serious study of love and marriage and of the abuse of wealth

In Merchant, Shakespeare wove together two ancient folk tales, one involving a vengeful, greedy creditor trying to exact a pound of flesh, the other involving a marriage suitor's choice among three chests and thereby winning his (or her) mate. Shakespeare's treatment of the first standard plot scheme centres around the villain of Merchant, the Jewish money-lender Shylock who seeks a literal pound of flesh from his Christian opposite, the generous, faithful Antonio. Shakespeare's version of the chest-choosing device revolves around the play's Christian heroine, Portia, who steers her lover Bassanio toward the correct humble casket and then successfully defends his bosom friend Antonio from Shylock's horrid legal suit.

Antonio, a Venetian merchant, complains of melancholy; his friend Bassanio, a merchant, asks for a loan of 3,000 ducats to travel to Belmont to court the beautiful heiress, Portia. Antonio agrees, but says that he must borrow the money from one of the city's moneylenders because all of his ships are currently at sea. At Belmont, Portia is also melancholy because, according to the terms of her father's will, all suitors must choose from among three coffers (out of a choice of gold, silver, or lead) -one of which contains a portrait of her. If the suitor chooses correctly, he may marry Portia; however, if he chooses unwisely, he must vow never to marry or even court another woman again.

Antonio approaches Shylock, a Jewish moneylender, to ask for a loan. Shylock hates Antonio because of the insulting treatment that Antonio has shown him in the past and tricks him into promising to forfeit a pound of flesh if he cannot pay in time. The merchant agrees to this, confident in the return of his ships before the appointed date of repayment. Shylock's daughter Jessica meanwhile elopes with the Christian gentleman Lorenzo (escaping with a fair amount of Shylock's wealth in the process). Bassanio, accompanied by friend Gratiano, departs for Belmont. Meanwhile, in Belmont, the Prince of Morocco is attempting to court t Portia, though failing ultimately to choose the correct casket; while back, in Venice, rumours swirl that Antonio's ships have been lost at sea. Later, The Prince of Arragon is also choosing the wrong casket, just as Bassanio arrives at Portia's house. He and Portia fall in love, and he makes the correct choice (the lead casket), and happily agrees to marry Bassanio that very night, but their happiness (and that of Gratiano, who will marry Portia's lady-in-waiting, Nerissa) is interrupted by news that Two of Antonio his ships have already wrecked in transit, and Antonio's creditors-including the vengeance-minded Shylock-are grumbling about repayment..

In Venice, Shylock taunts Antonio, and refuses to listen to reason. Word comes to Bassanio about Antonio's predicament, and he hastens back to Venice, leaving Portia behind. Portia, and her maid, however, travel after him, Nerissa; disguising themselves as a lawyer and clerk, respectively. When Bassanio arrives, the loan is in default and Shylock is demanding his pound of flesh. Even when Bassanio (now backed by Portia's inheritance) offers many times the amount in repayment, Shylock is still intent on revenge. A duke, who sits in judgement, will not intervene. When Shylock refuses to accept Bassanio's offer to repay the loan, the Duke announces that he has called on a legal expert to settle the matter. A letter arrives from the expert, saying that he has sent one of his brightest pupils to pass judgment--the pupil is Portia, who arrives still dressed as a young lawyer. She reads the contract, and declares that Shylock is entitled to the flesh. The moneylender praises her, but Portia then adds that the contract says nothing about shedding blood, so Shylock must cut the flesh without making Antonio bleed or else be arrested for shedding a Christian's blood. Shylock angrily retreats and says that he will take Bassanio's money, but Portia denies him even this, declaring that he has conspired against a Venetian citizen's life and thus his own life is forfeit. However, the court shows mercy-- he has forfeited his wealth as well as his loan. Half is to go to the city, and half is to go to Antonio

In the end, Antonio gives back his half of the penalty on the condition that Shylock bequeaths it to his disinherited daughter, Jessica. Shylock also must convert to Christianity. A broken and defeated Shylock accepts in a piteously moving scene. As the play ends, news arrives that Antonio's remaining ships are returned to port; with the exception of the humiliated Shylock, all will share in a happy ending.

Still disguised as a lawyer, Bassanio's wife induces Bassanio to give her alter ego, the "young lawyer" the ring that Portia had given to him, Gratiano gives Nerissa (Portia's "clerk") a ring that she gave to him, and the two women return to Belmont. When the men get back, they are accused of having given the rings to women. Eventually, however, Portia reveals the deception, news arrives that some of Antonio's ships have been recovered, and the company celebrates happily.

In the modern, readings of Merchant, the problem of anti-Semitism in the play has loomed large. A close reading of the text must acknowledge that Shylock is a stereotypical caricature of a cruel, money-obsessed, medieval Jew, but it also suggests that Shakespeare's intentions in Merchant were not primarily anti-Semitic. Indeed, the dominant thematic complex in The Merchant of Venice is of a universal nature than any specific religious or racial hatred; it spins around the polarity between the surface attractiveness of gold and the Christian qualities of mercy and compassion that lie beneath the flesh.

Among the play's several notable secondary characters is Lancelot Gobbo, who when the play begins is in the service of Shylock. He decides to serve Bassanio instead. The Merchant of Venice introduced two expressions to the English language: "a pound of flesh," to signify an extortionate payment or bargain, and "shylock," to indicate an extortionate creditor. The character of Shylock has been the subject of modern scholarly debate over whether the playwright displayed anti-Semitism or religious tolerance in his characterization, for, despite his stereotypical usurious nature, Shylock is depicted as understandably full of hate, having been both verbally and physically abused by Christians, and he is given one of Shakespeare's most eloquent speeches ("Hath not a Jew eyes? . . . ").