It is Google's measurement of a page's popularity. It is determined from the quantity of links linking back to it as well as quality links linking back to it. The higher the more "worth" your page is in the Internet Marketing world.
Well, PR refers to Page rank which is a remark given by search engines to know how much value your website has amongst all websites? But it doesn't mean that only your site will have that PR. There are so many sites on web that will have the same value as yours.
PR from 1 to 10 is not so relevant to real google rank. It gives you an approximate value. The real value is not available publicly.
Google's toolbar PR *used* to be some type of rudimentary representation of your real internal Google pagerank (which is used in search algorithms). However, lately, it's nothing more than show.
Google wants to disuade webmasters from buying/selling/trading links for PR. They know webmasters think their Google toolbar shows the PR value which represents link power. They also know that SEO types are the only people who even look at the PR toolbar. Therefore, in an effort to deprecate the toolbar entirely, they populate it with phony data and let word get around the webmaster community not to trust the toolbar.
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