Shapes are drawing objects, which you generate as part of your document, rather than bringing them in from a separate source. They include lines, connectors, arrows, cartoon callout balloons, and many other basic drawings.
To insert a shape, click AutoShapes on the Picture submenu, and then select the shape you want on the AutoShapes toolbar.
When you do, the drawing canvas appears. Just click where you want the shape to appear. Then once the shape is in place, you can move, resize, rotate, and otherwise change it.