As we know that to run an operating system it must interact with its hardware, for this a kernel has been developed which was sufficient enough to interact with all of the basic components of PC, now to make the interaction more real and ease a shell (C Shell, Korn Shell and latest 'BASH Shell') has been developed, which carry the input from the user to perform a task.
In 1991 a name came in existence when a Finnish student Linus Torvalds has worked on a project and developed its own kernel, so a new OS has evolved in the name of Linus Torvalds, called as Leenyx(Pronunciation) or as Linux, continued with the pervious development Linux still is an open source OS, and to keep up the work he manages to involved other developers for support and this was all done with the help of networking across the globe in this context a OSDL (Open Source Development Lab) was created in 2000 and it was a open source development.
What does it mean by Linux is free, it means its source code can be changed or modified by anyone but it doesn't mean, it can't be sell or anybody can charge you on using its application or OS services.
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