In Word 2000 indents add structure to documents. Use the indent ruler and tabs to help make documents clearer.
When all of the lines in a paragraph are indented except the first line, a hanging indent is created. In fact, the paragraph below is formatted using a hanging indent. Hanging indents are not standard in documents such as business letters, but you may see examples of the hanging indent on webpages, newsletters, and PowerPoint presentations.
If you're still confused about why you would use a hanging indent, notice the bulleted lists in this course. Here, Word automatically creates hanging indents to place the bullets so the second line of text is aligned directly under the first line.