If you have had any experience with picture on you computer, you will know that different types of images have different types of files. You may for example have come across 'Bitmaps' with a .bmp extension. These are after all the most common and are often used as 'Windows' backgrounds.
Web Pages can usually only display files of the type '.gif' '.jpg' and less commonly '.png'
Here are two examples of the same photograph.
This is an enlargement of a .jpg image
This is an enlargement of a .gif image
You can see a difference but what exactly is it?
Well it's all about the number of colours displayed. Jpegs display up to 16 million colours whereas Gif files only display 256. You can see this if you look closely at the pixels.
Therefore you find that jpegs are used mainly for photographs and images with a lot of detail and gifs are used mainly for icons, graphics and borders.
To place an image onto a webpage, you use the IMG tag. Here is the code displaying the above pictures: