Compounding Compounds are formed by combining two, or sometimes three or more, existing words. There is often a clear connection between the meaning of a compound and the meanings of the original words, so that examining the construction of a compound will often help you to understand its meaning. Some compounds are written as single words (basketball, mailbox); some as a series of separate words (big business, point of view); and some with hyphens (fifty-fifty, laid-back).