You are not showing a complete example, but input
s and output
s are part of a hierarchical module declaration. reg
is a data type associated with a signal. Typically one encapsulates your circuit in a module, and then you instantiate that module in a top-level module to provide stimulus and observe the outputs.
module circuit( output wire A;
input wire B, C;
wire w1, w2; // internal wires
and (w1, B, C);
not (w2, C);
or (A, w1, w2);
endmodule
module top;
reg B,C; // these are different signals that get connected to the circuit wires
wire A;
circuit c(A,B,C);
initial begin
B = 0; C = 0;
...
endmodule