Image Editing Definitions

Image file created by Adobe Photoshop, the most commonly used professional image-editing program; may include image layers, adjustment layers, layer masks, annotation notes, file information, keywords, and other Photoshop-specific elements.Photoshop documents support RGB, CMYK, grayscale, monochrome, duotone, indexed color, Lab color, and multichannel color modes.

Document created with InDesign, a professional print and digital layout program; may include formatted text, links, images, and other embedded media; supports multiple pages and page transitions.InDesign documents typically use the .INDD file extension; some documents may be saved with just the ".ind" extension to conform to Windows' standard three-letter extension naming convention.

Vector image file created by Adobe Illustrator; composed of paths, or lines connected by points, instead of bitmap data; may include objects, color, and text; often referred to as a Illustrator drawing.Illustrator documents can be opened with Photoshop, but the image will be rasterized, meaning it will be converted from a vector image to a bitmap.

JPEG:

Compressed graphic format standardized by the Joint Photographic Experts Group (JPEG); supports up to 24-bit color, which makes JPEG a good format for storing digital photos; compressed using lossy compression, which may noticeably reduce the image quality if high amounts of compression are used.
JPEG images are commonly used for Web graphics and for storing photos taken with digital cameras. They are usually saved with a .JPG extension.
This here is a photo of a flower compressed with successively more lossy compression ratios from left to right.