The name "Diwali" or "Divali" is a contraction of "Deepavali", which translates into "row of lamps". Diwali involves the lighting of small clay lamps filled with oil to signify the triumph of good over evil. These lamps are kept on during the night and one's house is cleaned, both done in order to make the goddess Lakshmi feel welcome. Firecrackers are burst because it is believed that it drives away evil spirits. During Diwali, all the celebrants wear new clothes and share sweets and snacks with family members and friends.
The festival starts with Dhanteras on which most Indian business communities begin their financial year. The second day of the festival is called the Naraka Chaturdasi. Amavasya, the third day of Diwali, marks the worship of Lakshmi, the goddess of wealth. The fourth day of Diwali is known as Kartika Shudda Padyami. The fifth day is referred to as Yama Dvitiya (also called Bhai Dooj), and on this day sisters invite their brothers to their homes.
Source - Wikipedia
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