Boot Process
When a computer is turned on, the computer's BIOS finds the primary bootable device (usually the computer's hard disk) and loads the initial bootstrap program from the master boot record (MBR), the first 512 bytes of the hard disk, then transfers control to the bootstrap code.
There are two versions of Grub in common use. Grub version 2 is now used by most distro's. Grub version 1 is now seldom seen. This is not to be confused with Stage 1 and 2. Stage 1 is an executable program that loads stage 2, a larger executable program. There can be an intermediate Stage 1.5.
Read more about this topic: GNU GRUB
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