A Graphic Novel is a collection of comic book issues usually reprinted in better quality on better quality paper. It is much more expensive than regular comic books due to its extended amount of pages. The term "Graphic Novel" can also refer to comic books that have a more adult-oriented theme.
Person 1: Have you ever read "Watchmen" by Alan Moore?
Person 2: Yeah, I think it's awesome. It set the new foundation of the term "Graphic Novel" along with Frank Miller's "Batman: The Dark Knight Returns" and Will Eisner's "A Contract with God."