Modem or router?

I know this will seem like a dumb question, but please explain the difference between a modem and a router, and when you use one over the other?

A Modem is a device to connect to a network of service providers, while a router is used to share this connection social network ISP among devices on a subnet or LAN. Thus, for example, number of connections DSL or cable home, will have a modem service provider that connects to the outside world, negotiates and manages all traffic between the world and your home. And you have a router (or wifi router) now allow multiple devices on your home network to share this worldly internet connection provided by the modem connection to your ISP gateway (it literally routes traffic between your devices and the tube of the modem to the Internet).  Nowadays many features combines a modem and a router in one device.

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