What is the basic difference between Application Event and Component Event?

Hello,

Component events: to talk to a parent using the capture and bubbling mechanism, like with DOM events. Usually, one component is interested by the event, like an event aggregator.

Application events: to broadcast to other components and not exclusively ancestors. Applications events can talk to many components that can be interested by the event. The broadcast can be boxed to an area of the DOM (everything below a DIV for example).