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Terminology of phylogenetic trees. This is a bifurcating tree. The vertical lines, called branches, represent a lineage, and nodes are where they diverge, representing a speciation event from a common ancestor. The trunk at the base of the tree, is actually called the root. The root node represents the most recent common ancestor of all of the taxa represented on the tree. Time is also represented, proceeding from the oldest at the bottom to the most recent at the top. What this particular tree tells us is that taxon A and taxon B are more closely related to each other than either taxon is to taxon C.
From similarity and differences of morphological, biochemical, cellular characteristics, biologist have constructed 'phylogenetic (evolutionary) trees' (who is most closely related to who, analogous to a family tree)