Rasterized Images or "bitmap Images" use a grid of colors known as pixels to represent images. Each pixel is assigned a specific location and color value. When working with rasterized images, you edit pixels rather than objects or shapes. (example: images done in paint programs or photo editing programs such as Adobe Photoshop are rasterized images. Usually files that are .TIF, .JPG, .BMP, .PNG, .GIF, are rasterized images).
Rasterized images are the most common electronic medium for continuation images, such as photographs or digital paintings, because they can represent subtle graduations of shades and color. Rasterized images are RESOLUTION-DEPENDENT - that is, they contain a fixed number of pixels. As a result, they can lose detail and appear jagged if they are scaled on screen or if they are printed at a lower resolution than they were originally created for.

If you are an owner of Adobe Photoshop 7.0 you can obtain more information in your manual in Chapter 2, page 53.