A chord is a group of three or more notes played together. Chords are commonly played by guitarists and keyboard players. On the bass guitar, chords are played one note at a time. This is called an arpeggio.
The most important chords to learn are the major chord (e.g., C major) and the minor chord (e.g., D minor). These chords are based upon the major scale. C is a shorthand way of writing C major. It applies to all major chords. Dm is a shorthand method of writing D minor. It applies to all minor chords. Every chord is based upon a specific formula which relates back to the major scale after which it is named.
All chords are based upon or derived from the four basic chord types i.e., major, minor, diminished and augmented. These chords consist of the 1st, 3rd and 5th notes of the major scale.
Each chord type is derived from the major scale after which it is named.
e.g.
C major is derived from the C major scale.
C minor is derived from the C major scale.
F diminished is derived from the F major scale.
Bb augmented is derived from the Bb major scale.
The formula for the construction of a major chord is 1 3 5, i.e., a major chord consists of the first, third and fifth notes of the major scale upon which is based.
The C major chord is based upon the notes of the C major scale.