Matter can exist in three states - solid, liquid, and gas. Examples of solids are ice and diamonds; examples of liquids are water and mercury. Gases include water vapor and oxygen. Characteristic properties like boiling point and melting point are used to identify substances and do not change, even if the substance changes state. Physical changes alter the substance's form through processes like melting or crushing, but do not change its chemical makeup. Chemical changes form new substances through chemical reactions.