What are the type of events into Salesforce Lightning component in Salesforce?

Types of event:

• Component Event: It is handled by the component itself or a component that instantiates or contains the component. It helps in passing values between two independent events (without parent-child relationship). It behaves just like a broadcast message.
• Application Event: It is handled by all components that are listening to the event. These events are essentially a traditional publish-subscribe model. This event is required in order to pass values from child components to parents.