A frame is just a container that you can resize and position anywhere on the page.
The difference between frames and text boxes is not that obvious so lets start by explaining the differences.
Text boxes have the same functionality as frames, with several advantages:
Text can be formatted with the full range of commands on the Drawing toolbar.
Text orientation can be changed.
In most cases you should use a text box rather than a frame.

Inserting Frames

There are two ways you can add frames to a document.
1) By converting an existing Text Box.
2) 2003 Using the Insert Frame button on the Forms toolbar.
3) 2007,2010 Developer tab, Legacy Tools > Insert Frame
4) Add the command to the QAT

Using the Forms Toolbar

One of the original uses of frames was to contains form field controls which is why this button is on the Forms toolbar.
Insert Frame - Inserts a free floating box onto the page that you can format and position.

Jumping Frames

If frames have been vertically anchored to a paragraph adding more or less text might cause them to automatically move.

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