I am trying to understand the difference between PCA and FA. Through google research, I have come to understand that PCA accounts for all variance, while FA accounts for only common variance and ignores unique variance.
However, I am having a difficult time wrapping my head around how exactly this occurs. I know PCA rotates the axis used to describe the data in order to eliminate all covariance. Does this step still occur in FA? If not, what differentiates FA from PCA? Thanks in advance.