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Ten Minute Guide to Employee Stock Option Purchase Plans by Ken Little

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Chapter 3. An Investing Primer

In this lesson, you will learn some basic investment and option terms and concepts.

You're an Investor Now

Your employee stock option plan or other equity compensation plan may be the first time you have had to deal with the stock market and investing terms. Don't worry, it's not as bad as it sounds. However, let me urge you to take a few minutes to refresh your memory. You may be familiar with stocks and mutual funds, but options are a different kind of investment. A short course will help you understand how they fit into your portfolio.

Plain English

Portfolio is an investing term that simply means all of your investments, including stocks, bonds, options, mutual funds, and so on.

Even if you plan to cash in your options ...

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