Word formation is the process of creating new words by adding affixes, combining words, or changing word classes. It can occur in five main ways: 1) affixation such as prefixes, suffixes, and circumfixes, 2) compounding words, 3) abbreviation, 4) acronyms using the first letters of words, and 5) blending two words together into a new single word. Examples are given for each type of word formation.