This document discusses the differences between direct and reported speech. Direct speech reports what someone said verbatim, using quotation marks. Reported speech does not use quotation marks, but rather reports the essence of what was said in an indirect way, making necessary adjustments to verb tenses and time/place words based on the rules outlined. The document provides numerous examples of how direct speech would be changed to the corresponding reported speech, such as changing the present tense "I am happy" to the past tense "He said that he was happy."