Complex words are f ormed by applying differentrnword fo rmation rules to simple or derived forms .rnThis study aims a t presenting possible ways of wordrnformations in Yam . It also tries to describe thernstructures and nature of the derived forms.rnIn- this connect ion, affixation compound ing andrnreduplication have been dealt with as majorrnproce s ses of word formation . Nominals, verba ls andrnadjectivals are formed by attaching differentrnaffixes to different roots or stems .rnCompounding is another type of word formation,rnin which two words are combined to fo r m a new one . trnMoreover, more complex compounds, that is, com poun~srnwith three components are also possible in thernlanguage .rnReduplication of words can also r esu lt inrnd er iv i ng new words . Reduplication of verb roots,rnfor instance, r esults in intensive and frequentativernforms.rnChanging tone patterns of existing words isrnalso a possible word formation process, though notrnas productive as the others.rn.',~ :rnDer ived words behave differently from their rnOf>rnbase forms phonologically , morphologically , ~rnsyntactically and semantically.