Faceted, as the meaning of the word suggests, is a type of cut given for gemstones where multiple flat surfaces called 'Facets' (faces) are created. This cut is most ideal for the transparent stones that refracts light inside & reflects outside boosting the shine & beauty of the gemstone.
Faceted cut stones can have larger flat surface at the top called ‘table’ and number of small faces, which reflect most of the light falling on gemstone, to maximize its brilliance.
Faceted gemstones typically have pointed bottom & look the best with claw setting.
Sometimes the faceted stones are also given flat bottom so that they could be bezel set, but that compromises the luster of the gemstone to some extent. This type of cut is then most specifically referred as ‘Faceted Top Cabochon’.
Faceted cut is further available in many forms/shapes depending upon the pattern in which the facets (faces) are cut on the gemstone. As any other industry, gemcutters are also constantly experimenting and developing newer faceted patterns, many of which remain unnamed.