What is Shell ?

The shell provides you with an interface to the UNIX system. It gathers input from you and executes programs based on that input. When a program finishes executing, it displays that program's output.

A shell is an environment in which we can run our commands, programs, and shell scripts. There are different flavors of shells, just as there are different flavors of operating systems. Each flavor of shell has its own set of recognized commands and functions.
Shell Prompt:

The prompt, $, which is called command prompt, is issued by the shell. While the prompt is displayed, you can type a command.

The shell reads your input after you press Enter. It determines the command you want executed by looking at the first word of your input. A word is an unbroken set of characters. Spaces and tabs separate words.

Following is a simple example of date command which displays current date and time:

$date
Thu Jun 25 08:30:19 MST 2009

You can customize your command prompt using environment variable PS1 explained in Environment tutorial.
Shell Types:

In UNIX there are two major types of shells:

    The Bourne shell. If you are using a Bourne-type shell, the default prompt is the $ character.

    The C shell. If you are using a C-type shell, the default prompt is the % character.

There are again various subcategories for Bourne Shell which are listed as follows:

    Bourne shell ( sh)

    Korn shell ( ksh)

    Bourne Again shell ( bash)

    POSIX shell ( sh)

The different C-type shells follow:

    C shell ( csh)

    TENEX/TOPS C shell ( tcsh)

The original UNIX shell was written in the mid-1970s by Stephen R. Bourne while he was at AT&T Bell Labs in New Jersey.

The Bourne shell was the first shell to appear on UNIX systems, thus it is referred to as "the shell".

The Bourne shell is usually installed as /bin/sh on most versions of UNIX. For this reason, it is the shell of choice for writing scripts to use on several different versions of UNIX.