A points is a single locations on the map represented by a coordinate such as a lat/lon position. Points are used to map locations when the boundary of the location is not important.
Point data is most commonly used to represent nonadjacent features and to represent discrete data points. Points have zero dimensions, therefore you can measure neither length or area with this dataset. Examples would be schools, points of interest, and in the example below, bridge and culvert locations. Point features are also used to represent abstract points. For instance, point locations could represent city locations or place names.