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Lesson 3. An Investing Primer > Investing Basics - Pg. 12

An Investing Primer 12 A company may issue different classes of stock with different rights. Be sure you understand whether the stock connected to your employee stock option plan is restricted in any way. One of the restric- tions you may encounter is stock without voting rights. Different classes of stock may be identified with the letters A, B, and so on. Caution Some companies issue special stock just for employee stock options. This stock may have restrictions that prevent it from being traded on major exchanges. Investing Basics Understanding basic investing concepts will help you decide what to do with your options. It is important to understand what you can do with your options and how they fit into your financial picture. Tip The basic idea of investing is to make your money work for you. You do this by investing it in a financial instrument that pays interest or grows. The simplest investment is a savings account at the bank. You deposit money in the account and the bank pays you a small amount of interest. Another form of investing is to put your money in something such as stocks, which it is hoped will appreciate over time. Either way, your money is working for you. A complete course in investing is beyond the scope of this book, but the important steps are fairly easy to cover.