I once had this question and now i run Web Hosting BIZ
You can run website from your own system. If you have Windows, Go to ADD/Remove. Install Windows Components > IIS Server.
Once Done.....simply enter Localhost in your browser. Your friends can see the website you on your computer. Go to whatismyip.com and tell them your IP to connect. Remeber you need port 80 open to do all this
a simple google search gave me this: *www.technospot.net/blogs/host-a-web-server-on-your-home-pc/
username:admin and
password:admin