What is Cookie?
A message given to a Web browser by a Web server. The browser stores the message in a text file. The message is then sent back to the server each time the browser requests a page from the server.
Also see session cookie and persistent cookie.
The main purpose of cookies is to identify users and possibly prepare customized Web pages for them. When you enter a Web site using cookies, you may be asked to fill out a form providing such information as your name and interests. This information is packaged into a cookie and sent to your Web browser which stores it for later use. The next time you go to the same Web site, your browser will send the cookie to the Web server. The server can use this information to present you with custom Web pages. So, for example, instead of seeing just a generic welcome page you might see a welcome page with your name on it.
The name cookie derives from UNIX objects called magic cookies. These are tokens that are attached to a user or program and change depending on the areas entered by the user or program.
See What You Need to Know About Cookies in the Did You Know . . . ? section of Webopedia.
Also see Do Cookies Compromise Security? in the Did You Know . . . ? section of Webopedia.
Courtsey of Webopedia.
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