Point of view refers to the perspective from which a story is told. It determines how much the reader knows about the characters and events. Common types include first-person, where the narrator uses "I" and shares personal experiences, and third-person, where an outside narrator describes the actions and thoughts of characters, often using "he," "she," or "they." In literature, point of view can significantly affect the reader's connection to the story. For example, a first-person point of view can create intimacy, allowing readers to experience the thoughts and feelings of the narrator, while a third-person omniscient point of view can provide a broader understanding of the entire narrative, including multiple characters' perspectives.