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I have just read in one of the answers here as follows:

One of the biggest reasons for the confusion between the two [principal component analysis (PCA) and factor analysis (FA)] has to do with the fact that one of the factor extraction methods in Factor Analysis is called "method of principal components". However, it's one thing to use PCA and another thing to use the method of principal components in FA. The names may be similar, but there are significant differences. The former is an independent analytical method while the latter is merely a tool for factor extraction"

Can anybody explain a little more about this, especially about PCA and method of principal components in FA?

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Alireza aminaee
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    That was explained [e.g. here](http://stats.stackexchange.com/q/50745/3277), read the answer and the comment. "PCA method in FA" is "Principal Axis method". It can be iterative (usually) or with just 1 iteration (rarely; if you know true commulanilies in advance). Once again let me recommend you to read a good book or chapter on FA instead of asking such sort of questions. – ttnphns Sep 13 '13 at 19:38
  • thanks @ttnphns. i think its about 10 days that i am reading about it. it makes me happy if you introduce me some useful books or articles. – Alireza aminaee Sep 13 '13 at 19:50

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