This is a medium shot that shows two characters within the frame. Pretty straight-forward but can be pivotal in establishing relationships between the characters.
A two shot is a type of shot in which the frame encompasses a view of two people (the subjects). The subjects do not have to be next to each other, and there are many common two-shots which have one subject in the foreground and the other subject in the background. It is very useful if the film is about two people.
The shots are also used to show the emotional reactions between the subjects. For instance, in the movie Stand By Me, this shot is used multiple times to show these emotions.
ICONIC EXAMPLE: Jules Winnfield (Samuel L. Jackson) and Vincent Vega (John Travolta) shooting Marvin in Pulp Fiction (1994). Yep, a two-shot of a two shots.
