Div coding assistance

I am trying to get my head around DIV code tags and want to ask a simple ish question.

If I open a div statement and then open another div statement, how does the page know which closing tag is for which statement, or does it not matter?

The parser takes the closest closing tag to the open tag to make a complete statement... for example... the closing tag and open tags are color coded below... the ones that are the same color go together.

<div id="tag1">
<div id="tag2">
<div id="tag3">

</div>
</div>
</div>

I don't think I explained that well with words, but that should help you understand... It's like a DIV statement inside a DIV statement.


When you write a DIV statement it looks like: What you put inside that statement, goes inside it... even if it's another DIV statement.