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A PowerShell script is simply a text file with a .ps1 extension that contains a list of commands PowerShell should execute. However, PowerShell's secure by default philosophy prevents all scripts from running, so double-clicking a PowerShell script from Windows Explorer won't execute it.
An executable binary file. Some operating systems (notably MS-DOS, VMS, and TWENEX) use the extension .EXE to mark such files. This usage is also occasionally found among Unix programmers even though Unix executables don't have any required suffix.