File formats are standardized ways of encoding information for storage and transmission on computers. Each format specifies how data is organized, allowing software applications to read and write files correctly. Common file formats include JPEG for images, MP3 for audio, and PDF for documents. Different file formats serve various purposes and have unique features. For example, DOCX is used for word processing documents, while CSV is ideal for storing tabular data. Choosing the right file format is essential for ensuring compatibility and preserving the quality of the content.