How to read UNIX file /etc/passwd

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File /etc/passwd in UNIX contains one entry per line for each user (or user account) of the system.  There are seven fields separated by a colon (:) symbol:

1. Username: It is used when user logs in. It should be between 1 and 32 characters in length.
2. Password: An x character indicates that encrypted password is stored in /etc/shadow file.
3. User ID (UID): Each user must be assigned a user ID (UID). UID 0 (zero) is reserved for root and UIDs 1-99 are reserved for other predefined accounts. Further UID 100-999 are reserved by system for administrative and system accounts/groups.
4. Group ID (GID): The primary group ID (stored in /etc/group file)
5. User ID Info: The comment field. It allows you to add extra information about the users such as user's full name, phone number etc. This field use by finger command.
6. Home directory: The absolute path to the directory the user will be in when they log in. If this directory does not exists then users directory becomes /.
7. Command/shell: The absolute path of a command or shell (/bin/bash). Typically, this is a shell. Please note that it does not have to be a shell.

/etc/passwd is only used for local users only. To see list of all users, enter:
$ cat /etc/passwd
To search for a username called tom, enter:
$ grep tom /etc/passwd

/etc/passwd file permission

The permission on the /etc/passwd file should be read only to users (-rw-r--r--) and the owner must be root:
$ ls -l /etc/passwd
Output:

-rw-r--r-- 1 root root 2659 Sep 17 01:46 /etc/passwd

Your password is stored in /etc/shadow file

Your encrpted password is not stored in /etc/passwd file. It is stored in /etc/shadow file. Almost, all modern Linux / UNIX line operating systems use some sort of the shadow password suite, where /etc/passwd has asterisks (*) instead of encrypted passwords, and the encrypted passwords are in /etc/shadow which is readable by the superuser only.