Floating objects in Microsoft Office are types of objects that allow increased flexibility in placement within the document, as opposed to in-line and framed objects. Floating objects were introduced with Microsoft Office 2000 and are now the default setting for objects.
Floating objects are useful for instances where users want to wrap text around a picture or shape. Several wrapping styles are available, including styles to keep objects in line with text, establish a square design or wrap text tightly.
To further the ease of use of floating objects, users can also drag them around with a mouse. This feature is commonly used to place watermarks over text.