Let's say you are typing a math test and are numbering the first question with this format: (1). This feature is the one, for example, that continues a numbered list after you type the first number in the list. This is a source of frustration for many Word users. With AutoFormat, Word will apply each formatting style as you type. A major difference is that AutoCorrect doesn't give you the option of making the replacement it just does it. Auto Correct is intended to correct misspellings and make simple replacements, but you can also replace entire paragraphs or pages like you can with AutoText.
