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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.
EXE (executable) files, such as videopad.exe, are files that contain step-by-step instructions that a computer follows to carry out a function. When you double-click an EXE file, your computer automatically executes these instructions designed by a software developer (eg. Nch Software) to run a program (eg. VideoPad) on your PC. Every software application on your PC uses an executable file - your web browser, word processor, spreadsheet program, etc. - making it one of the most useful kinds of files in the Windows operating system.