RSA is a cryptographic algorithm, named after its authors, Rivest, Shamir, and Adleman. (Also an acronym for the Returned Serviceman's Association. Ask your grandfather, if he's sober.)
This is commonly the algorithm used in PublicKeyEncryption.
Loosely described, this is how it works.
Your public key is the pair (PQ, E). Your private key is the number D (reveal it to no one). The product PQ is the modulus (often called N in the literature). E is the public exponent. D is the secret exponent.
You can publish your public key freely, because there are no known easy methods of calculating D, P, or Q given only (PQ, E) (your public key). If P and Q are each 1024 bits long, the sun will burn out before the most powerful computers presently in existence can factor your modulus into P and Q.
An example of RSA encryption. Go read t - it makes all the above stuff make sense. Note, it's only reversable because the numbers are tiny.
I'm not sure how much RSA Secyurity have to do with the RSA algorithm; I assume they either hired the inventors and/or bought the name.
4 pages link to RSA: