The characters in a story are the people who experience the events of the plot. Every story you read will have characters. The main character will be the protagonist. The protagonist is the character who experiences the main conflict or problem in the plot. This character may be dynamic or static. A dynamic character is one who changes during the course of the story. Most protagonists are dynamic. A static character doesn't change during the story. Characters in the story who are static often help to develop the main character to provide them with the opportunity to change. The antagonist is the character in the story who plays a major role in the plot and helps create and develop the main character. The antagonist may be an opposing force to the protagonist.
Characters can be examined and studied using the three A's criteria: Appearance, Actions, Attitude
Appearance - the characters body structure (height, weight, proportioning), facial features (hair, eyes, complexion, notable features), and clothing.
Actions - what the character does. For every attitude there will be an action that proves it.
Attitude - how a character thinks. The character may be intelligent, determined, curious, talented, brave, stubborn, humorous, pessimistic, etc.
POINT OF VIEW
The narrator of a short story may be a character in the story. This is called the first person narration. The narrator and character uses "I" to refer to themself in the story. This narrator has limited knowledge of what the other characters are thinking and doing.
Third person narration is when the narrator is telling the story as though they were watching it and telling the story as they see it unfold. If the narrator knows what all characters are thinking and doing, the narrator is described as omniscient. If the narrator is third person and telling the story from one character's perspective, the narrator is described as limited.
http://kidswriting.miningco.com/library/writinglessons/blcharacter5_2.htm
http://www.infinityplus.co.uk/stories/icesub.htm