A quotation is a phrase or a sentence from a book or a speech that reflects the author's profound thoughts.
Often the words quote and quotation are used as substitutes for each other. Quote is a verb and Quotation is a noun. So, in effect, you quote a quotation.
Despite that, using quote instead of quotation is so prevalent that it is sometimes considered acceptable. So, you will find terms like: love quotes, inspiration quotes, funny quotes...
Note: In deference to popular usage, the Quotations site on About.com uses these words interchangeably.
