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File Format Definitions and Uses:
PNG stands for Portable Network Graphics — a compressed raster graphic format that employs lossless data compression. PNG was created to improve upon and replace GIF (Graphics Interchange Format) as an image-file format not requiring a patent license. PNG is commonly used on the web and is also a popular choice for application graphics. Unlike JPG, PNG allows you to fade an image to a transparent background rather than a solid color. A PNG can be placed on any color background and maintain its original appearance, even around the edges. PNG works well for web and desktop publishing.
JPG or JPEG stands for Joint Photographic Experts Group, the name of the committee that developed the format. JPEG is a lossy compression technique for color images. The degree of compression can be adjusted, allowing a selectable tradeoff between storage size and image quality. JPEG typically achieves 10:1 compression with little perceptible loss in image quality.Although it can reduce files sizes to about 5% of their normal size, some detail is lost in the compression. Unlike PNG or EPS files, JPEG files do not allow for transparent backgrounds. JPG works well for web and desktop publishing.
EPS stands for Encapsulated PostScript — a format based on the PostScript language. The EPS file format is a graphics format developed by Adobe Systems using the PostScript programming language. Primarily used with vector graphics, the EPS format is compatible with a diverse range of professional graphics programs. Unlike PNG and JPG files, EPS files can be almost infinitely scaled in size without degrading the output because they are vector based. EPS is considered the best file format for graphics professionals and any type of high-resolution printing.