Chapters and verses are a human invention designed to aid finding particular passages.
Answer:
You are correct in understanding that the books of the Bible, as originally written, were not divided as we find today with chapters and verses. Originally they were written as narratives, stories or letters. Hundreds of years before there were bound books as we have today, the texts of the Bible were preserved on scrolls that would be rolled up for storage.
Prior to the 12th century there were no divisions added to the text of Scripture. But in 1250, Cardinal Hugo divided each of the books of the Bible into chapters. About 300 years later, in the mid 1500s, verses were also added. The purpose is to aid in finding a particular passage, which indeed these divisions do. The drawback is that these divisions often interrupt the thought pattern of the author. So when we read and study the Bible, we need to keep this in mind and look for flow and context from one chapter or verse to the next.
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