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Stands for "Parameter Random Access Memory," and is pronounced "P-ram." PRAM is a type of memory found in Macintosh computers that stores system settings. These settings include display settings (like screen resolution and color depth), the time zone setting, speaker volume, and the startup volume choice. The system settings that are stored in the computer's PRAM differ from Mac to Mac, but the purpose of the memory remains the same.
PRAM resetting a Mac is extremely important when processing for resale. The Find My Mac token is stored in PRAM.
To preform a PRAM reset, visit here - PRAM Reset