What is Watermark in MS Word? Explain how you create a custom Watermark.

A watermark is faint background text/image behind document content marking status or ownership — e.g. DRAFT, CONFIDENTIAL, CAAN logo on notices.

Create custom watermark (Word):

1. Open document → Design tab → Watermark.
2. Custom Watermark → Text watermark → type text (e.g. DRAFT), choose font, size (Auto), colour (light grey), layout Diagonal/Horizontal; or Picture watermark → Select Picture → set Washout for faint logo.
3. Apply → check on every page in Print Preview.

Use: draft tender notices, confidential exam papers, letterheads — prevents misuse as final copy.