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Blending is combining 2 words to make a new word, using only part of at least one of the words (e.g. flirtberrying = flirting via a Blackberry device). If all of both words are used, then it’s a compound (e.g. property porn = tv shows inviting the audience to wish they had grand homes). A compound often appears at first as a phrase, then hyphenated, then as a single word.
Clipping is reducing a word by removing part of it, usually the end but occasionally the beginning (e.g. ‘phone). Initialism can be seen as an extreme form of clipping (e.g. AOL). Acronyms differ from initialism in that they are read/said as a word rather than a series of letters (e.g. LOL)
Affixation involves adding prefixes or suffixes (or both) to words. Prefixes often reverse the meaning (e.g. uncool), while suffixes often change the word class (e.g. geek (n.) -
Eponyms are proper nouns now used for something else, usually something invented by that person or generic items known by a brand name (e.g. Hoover -
Semantic shifts are changes in the meanings assigned to words. Narrowing is when a word refers to something more specifc than originally (e.g. gay narrowed to mean homosexual man, as they were thought to be carefree, light and frivolous). Broadening is of course the opposite -