A neologism (from Greek neo 'new' + logos 'word') is a newly coined word that may be in the process of entering common use, but has not yet been accepted into mainstream language. Neologisms are often directly attributable to a specific person, publication, period, or event. The term neologism was coined in 1803.
Neologisms tend to occur more often in cultures that are changing rapidly and also in situations where there is easy and fast propagation of information. The new terms are often created by combining existing words or by giving words new and unique suffixes or prefixes. Portmanteaux are combined words that begin to be used commonly. Neologisms also can be created through abbreviation or acronym, by intentionally rhyming with existing words or simply through playing with sounds.
Neologisms often become popular through memetics, by way of mass media, the Internet, and word of mouth, including academic discourse in many fields renowned for their use of distinctive jargon. Every word in a language was, at some time, a neologism, ceasing to be such through time and acceptance.
Neologisms often become accepted parts of the language. Other times, however, they disappear from common use just as readily as they appeared. Whether a neologism continues as part of the language depends on many factors, probably the most important of which is acceptance by the public. Acceptance by linguistic experts and incorporation into dictionaries also plays a part, as does whether the phenomenon described by a neologism remains current, thus continuing to need a descriptor. It is unusual, however, for a word to enter common use if it does not resemble another word or words in an identifiable way.
When a word or phrase is no longer "new", it is no longer a neologism. Neologisms may take decades to become "old", however. Opinions differ on exactly how old a word must be to cease being considered a neologism; cultural acceptance probably plays a more important role than time in this regard.
From Wikipedia http://en.wikipedia.org/wiki/Neologism