importing pics into photoshop elements 9

this may apply to all versions of photoshop i don't know, but why is it if a download a image from the internet that is say 1200x1200 when i open it up in photoshop it's much smaller and i have to resize it?  i lose the quality when i do.  isn't there some way to keep that same size and if i have to resize it down in photoshop i can?  for the life of me i can't figure this out.  i have downloaded pics that were small and open them in elements 9(my version) and the picture is bigger.  what am i missing here?