sp_execute is an internal sp that is used in the prepare/execute model. From Books On Line:
These system stored procedures support the prepare/execute model of executing Transact-SQL statements in ADO, OLE DB, and ODBC:
sp_execute sp_prepare sp_unprepare
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by: svidPosted on 2004-07-27 at 11:11:54ID: 11649254
Do you mean sp_executesql?
If so, from BOL:
"Executes a Transact-SQL statement or batch that can be reused many times, or that has been built dynamically. The Transact-SQL statement or batch can contain embedded parameters."
Typically you would use it to execute dynamic SQL, although you can execute any TSQL statement.
Example:
exec sp_executesql @sql