Here's a breakdown:
* Verbal: A word that is formed from a verb but functions as a different part of speech.
* Gerund: A verbal that ends in -ing and functions as a noun.
Examples of gerunds:
* Swimming is my favorite way to exercise. (Subject of the sentence)
* I enjoy reading novels. (Object of the verb "enjoy")
* She is good at dancing. (Prepositional object)
Key point: While all gerunds end in -ing, not all words ending in -ing are gerunds. Some can be present participles (verbs used as adjectives, e.g., "the running water").