A Short Code is similar to the address (URL) of a website. It is a unique location to send messages to, that all cellular carriers are aware of. You combine a Short Code with a Keyword to form a call-to-action address. An example would be: 'Text KEYWORD to SHORTCODE to join our VIP invite list.'
A Keyword is a short word (which may include numbers) that customers send a text message to, in order to join your list. An example would be: 'Text KEYWORD to SHORTCODE to join our text messaging list.'