Shell Programming and Scripting

INVOCATION
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The following paragraphs describe how bash executes its startup files.
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When bash is invoked as an interactive login shell, or as a non-interactive shell with the --login option, it first reads and executes commands from the file /etc/profile, if that file exists. After reading that file, it looks for ~/.bash_profile, ~/.bash_login, and ~/.profile, in that order, and reads and executes commands from the first one that exists and is readable. The --noprofile option may be used when the shell is started to inhibit this behavior.
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When an interactive shell that is not a login shell is started, bash reads and executes commands from /etc/bash.bashrc and ~/.bashrc, if these files exist. This may be
inhibited by using the --norc option. The --rcfile file option will force bash to read and execute commands from file instead of /etc/bash.bashrc and ~/.bashrc.

When bash is started non-interactively, to run a shell script, for example, it looks for the variable BASH_ENV in the environment, expands its value if it appears
there, and uses the expanded value as the name of a file to read and execute. Bash behaves as if the following command were executed:
if [ -n "$BASH_ENV" ]; then . "$BASH_ENV"; fi
but the value of the PATH variable is not used to search for the filename.

If bash is invoked with the name sh, it tries to mimic the startup behavior of historical versions of sh as closely as possible, while conforming to the POSIX standard as well. When invoked as an interactive login shell, or a non-interactive shell with the --login option, it first attempts to read and execute commands from /etc/profile and ~/.profile, in that order. The --noprofile option may be used to inhibit this behavior. When invoked as an interactive shell with the name sh, bash looks for the variable ENV, expands its value if it is defined, and uses the expanded value as the name of a file to read and execute. Since a shell invoked as sh does not attempt to read and execute commands from any other startup files, the --rcfile option has no effect. A non-interactive shell invoked with the name sh does not attempt to read any other startup files. When invoked as sh, bash enters posix mode after the startup files are read.
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Bash attempts to determine when it is being run with its standard input connected to a network connection, as when executed by the remote shell daemon, usually rshd, or the secure shell daemon sshd. If bash determines it is being run in this fashion, it reads and executes commands from ~/.bashrc and ~/.bashrc, if these files exist and are readable. It will not do this if invoked as sh. The --norc option may be used to inhibit this behavior, and the --rcfile option may be used to force another file to be read, but neither rshd nor sshd generally invoke the shell with those options or allow them to be specified.

Originally Posted by RudiC

That highly depends on the shell that you use and which you fail to mention. Should that be bash, read man bash: