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This method registers an event handler on element and returns element.
element.observe(eventName, handler[, useCapture = false]);
<html> <head> <title>Prototype examples</title> <script type="text/javascript" src="/javascript/prototype.js"> </script> <script> function RegisterFunction() { $('test').observe('click', function(event){ alert(Event.element(event).innerHTML); }); } </script> </head> <body onload="RegisterFunction();"> <p id="test">Click me to see the result.</p> </body> </html>
To understand it in better way you can Try it yourself.
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