Help me understanding Core and thread

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hi guys,
i have big confusion and may be wrond understanding in core and thread, can please explain

what is core , Ghz, and thread
eg: E5520 is 2.26 Ghz, have 4 core , 8 threads, what it means..?
how the performance increase with more core..?

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What i know ..??
i know core is a hardware, nothing other than that

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