Graphics
Graphics are images that are viewable on the web such as logos, photos, or special image designs. Currently, only two graphic formats are standard for web design:
GIF - GIF stands for Graphics Interchange Format. Supports a maximum of 256 colors. GIFs have lossless compression (does not loose quality.) Use GIFs for web graphics that are composed of few colors or and contain large areas of uniform color, for example, line art.
GIF -->

JPEG stands for Joint Photographic Experts
Group. JPG supports millions of colors. JPGs are lossy, meaning that they loose
quality each time they are saved. Use JPGs for photographs or other images that
have many colors with gradual changes from one to another such as photos of people or nature scenes.
JPG -->

The same image saved as GIF File Format -->
If you save this image as a GIF file format, you can see the loss in quality from the JPG above.
This is because the GIF uses only 256 colors in comparison to the JPG's millions of possible colors.

These are the 256 colors that the GIF File format uses to make the existing image above.
