Lipids are organic compounds formed from fatty acids and alcohols bonded together by ester linkages. They are insoluble in water but soluble in organic solvents. Lipids serve several important biological functions. They provide energy, supply essential fatty acids, aid in vitamin absorption, are important components of cell membranes and the nervous system, and serve as an energy store. Lipids also play roles in extracellular transport and hormone synthesis. Lipids are classified as simple lipids like fats and oils, compound lipids containing additional components, and derived lipids which are hydrolysis products of other lipids.