Outlook wouldn't be much good to you if it didn't have the capability to store information and organize this information. To do this, Outlook uses folders to store information in much the same way you would use folders in Windows Explorer to store your files, documents, and applications. Depending on what type of e-mail account you are using, these folders are stored on your local machine in a Personal Folders file (see FAQ 1.22) or an e-mail server such as Microsoft Exchange Server.
Outlook provides a number of default folders for each profile and for each e-mail account in a profile:
Each of these folders represents a particular type of item that Outlook can handle. ...