Iphone 5 - SIM card and contacts

Are new contacts stored on the SIM card and how do you see what is on the SIM card?  Also, why does an old contact name and number (one that is no longer in my contacts app) appear when i start to enter the name of the person i am sending the text to? And lastly, in the same "new message" app when i am trying to compose a new text message and i click on the + symbol to add a new contact, my contacts are displayed in order by last name instead of first name (i have already gone to settings, contacts, sort order and display order and set it to first, last?

Iphone stores NOTHING on the SIM card.

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