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Selecting Create > New Point Light allows you to create a new Point Light in your scene. A Point Light is an omni-directional light, such as that given off by an incandescent light bulb. Point Lights are the virtual equivalent of light bulbs. They put out a 360-degree sphere of light. The image shows a sphere illuminated by a single white Point Light. You will notice that it appears similar to a spot light. The difference is that the spot light is only casting light in one direction. In other words, an object behind a Spotlight will receive no illumination.
In addition to the default parameters, each Point Light has the following parameters that control the light sphere which is the visible wireframe showing where the light's influence will be.