In response to the title of your post, a receiver is a component that combines in one unit a pre-amp (used to control volume, select between different sources like CD, DVD, Phono, TV, etc., as well as boost the signal a bit), a power amplifier (which may have 1, 2, 5 or 7 channels or even 3 or 4, and boosts the signal to a level that the speakers can use), and a tuner (which lets you receive radio broadcasts).
A stereo receiver has two channels, but an AV (Audio-Visual) receiver will usually have 5, 6, or 7 channels.
If it's an AV receiver, it will also contain decoders for Dolby or DTS-encoded signals, as well as other formats.