Mushrooms are the fruiting body of a fungus, with the rest (a root-like system known as mycelium) growing underground or in rotting trees, or in some cases in a symbiotic relationship with some types of plants, or a few as a parasite on a living plant. The mushroom tends to pop up and grow quickly, produce spores, and then die back quickly (how long it will last above ground depends on the type of mushroom). The underground mycelium can spread widely, which is why you often find a lot of mushrooms of one type in the same area, and at the same spot year after year. Some of these underground networks are huge and can cover very large areas (several square miles in a few cases), but are all still one organism. If you have ever found some of the small brown mushrooms that grow in a circle on your lawn (known as fairy ring mushrooms), they grow in a circle because the underground network expands out each year in search of new nutrients. Therefore, the ring of mushrooms will get a little wider each year. Some of these fairy rings are estimated to be over 600 years old. And you're right that most types of mushrooms really prefer to pop up in shady or moist areas (mushroom hunting is best after a decent rainfall). If you plan on eating wild mushrooms, just make absolutely certain of exactly what kind they are first. A few people die every year eating poisonous mushrooms, and many of the poisonous types are difficult to distinguish from non-poisonous if you don't know what to look for. For a few types of mushrooms like the Destroying Angel and the Death Cap, eating only a very small portion of one mushroom can be fatal. The Audubon Society puts out a really informative field guide to mushrooms for any one who is interested, and it really helps in learning how to identify mushrooms correctly.
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