Usually it means that you have a computer that is always connected to the internet that has directories that are accessible from that connection. This usually requires the use of web server software to process requests, etc.
What a the procedures of hosting a web site?
Two major things... you have to own a domain (www.yoursite.com) which costs roughly $3-10/year. You have to pay for hosting fees where you website will reside. You technically do not have to use the same company both both services. For instance, Yahoo offers a complete package for a certain price. Or, you could register a dot com with Yahoo, but have your site hosted with godaddy.com for example.
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