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What is the 'Stationery Pad' setting in OS X Finder?

What is the 'Stationery Pad' setting in OS X Finder?

In the OS X Finder, when I do a Get Info on a file I notice a checkbox for 'Stationery Pad' right above 'Locked' (see attached).

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Guest [Entry]

As explained here, it turns any file into a template. Tick it and open the file, and a copy of the file will be created, ready to be saved elsewhere without affecting the original.