File formats are standardized ways of encoding information for storage and transmission. They determine how data is organized within a file, allowing software applications to read and write the data correctly. Common file formats include JPEG for images, MP3 for audio, and PDF for documents. Each format has specific characteristics that make it suitable for particular types of content. Different file formats serve various purposes and can affect the quality and size of the data. For example, PNG files are often used for images requiring transparency, while DOCX files are used for word processing documents. Understanding file formats is essential for effective data management and sharing.