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Callouts in Salesforce


         I am getting confusion about callouts, when third party system connect to salesforce callouts are hit, or salesforce is hit the thirdparty system at that time callouts are executed in which case callouts are used,

       And one more doubt is some thirdparty system are axcess the account records from salesforce for that they ask me endpoint url for account object may i know how can i create a endpoint url for account.which endpoint url i want to give to thirdparty developers.
Callout are when you get salesforce to talk with another system (Salesforce->Third party)
API Calls is accessing salesforce through another system (Third Party->Salesforce)

If you are talking about the REST API, have a look at this :
You'll be able to figure out the endpoint with that. *you need to make sure to change na1 with the proper instance you are on.