Market Arbitrage

This phenomenon doesn't happen very often any more. Shares of Disney trade for $174.98 on the London Stock Exchange; they trade for $174.92 on the NYSE. There's a 6-cent spread in their prices. And call it 2 cents in commission or transaction charges for large scale arbitrageurs.

So you'd buy 10 million shares (if you could), on the New York Stock Exchange and sell in London, making 6 cents, net 4 cents times 10 million. That's 8 million nickels you won risklessly, or 400 grand.

And that's market arbitrage in a Small World after all.