Vesting: When you actually get the shares (instead of just being promised you'll receive them)
Dilution: When the pool of shares expands without the existing shareholders receiving a commensurate proportion of the new shares (used to transfer value from existing shareholders to new). Usually occurs after each Round completes.
If you're looking for a really short book with a good explanation of the entire process. The cover is a bit funny as the book is a bit old, but the information inside is still very applicable.
Edit: The content is much more about the sayings and metaphors used within venture capital. It will complement the other suggestions nicely!
For example: this article (http://www.techrepublic.com/article/glossary-startup-and-ven...), gives the definition for "preferred stock" (a random selection) as "stock that carries a fixed dividend that is to be paid out before dividends carried by common stock." As someone not in the startup business (and not knowing much about finance in general), this is not really helpful. I'm not sure what it means for a dividend to be fixed, nor is there a definition of "common stock" anywhere.
I realize this isn't really the right thread to ask, but these things come up all the time so it seems like there might be a respectable reference somewhere online.
How about http://www.accountingcoach.com/stockholders-equity/explanati...