How to wipe my iMac of all data except for OSX?

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I'm new to the forum, so this may be in the wrong place, sorry ahead of time.

I'm planning on selling my iMac desktop, (I've already got a mac laptop), but I have a couple issues.

1. How do I erase all saved passwords and downloads from my mac?

2. I don't have the installation disks or anything else like that that came with the computer when I bought it.

Could someone please explain how to erase all saved passwords and downloads, essentially getting it ready to be sold to a total stranger?

Thank you very much!
 

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