Racboy, that's no problem at all mate. Even Stephen Hawking was a noob at one point at some point.
A hosting company operates (part of) a web server (which is like a high spec computer connected to the internet). Then the space upon the hard drives (file storage) of these servers is sold to people who build websites on them. The websites are accessed via a domain name for example
www.computerforums.org. So when you type the domain name into your web browser it accesses the websites files on the web server and you see the web site. Hosting companies are the people who own that storage space and sell/rent it out to people to put there sites on.