Vue Js Component Syntax

I have created a component in Vue JS named “Component”. I have learnt that we use the comoponent in a parent component template like this.

<template>
   <p>I am a heading </p>
   <Component/>
</template>

But if I use the Component syntax like an HTML DOM element syntax and embed more HTML markup inside it, what does it mean actually? I am new to Vue JS and have no idea about this.

<template>
   <Component>
      <div> 
       Hello I am a div 
      </div>
  </Component>
</template>