System Administration Guide, Volume 2

/etc Files

If your network uses /etc files, the password information is kept in the system's /etc/passwd and /etc/shadow files. The user name and other information are kept in the password file /etc/passwd, while the encrypted password itself is kept in a separate shadow file, /etc/shadow. This is a security measure that prevents a user from gaining access to the encrypted passwords. While the /etc/passwd file is available to anyone who can log in to a machine, only superuser can read the /etc/shadow file. You can use AdminSuite 2.3's User Manager, Admintool, or the passwd command to change a user's password on a local system.