Neurotransmitters are stored in synaptic vesicles, which are located in the axon terminal of a neuron. When an action potential arrives at the axon terminal, it triggers the release of these neurotransmitters into the synaptic cleft. The neurotransmitters then bind to specific receptors on the post-synaptic cell, leading to either excitatory or inhibitory responses, depending on the type of neurotransmitter and receptor involved.