The main differences between linked objects and embedded objects are where the data is stored and how the object is updated after you place it in the destination file. With a linked object, the original information remains stored in the source file.
Embedded objects are stored in the workbook that they are inserted in, and they are not updated. The destination file displays a representation of the linked information but stores only the location of the original data (and the size if the object is an Excel chart object).
For example, if you select a paragraph in a Word document and then paste the paragraph as a linked object in an Excel workbook, the information can be updated in Excel if you change the information in your Word document.
When to use embedded objects If you don't want to update the copied data when it changes in the source file, use an embedded object.
Only programs that are installed on your computer and that support OLE objects appear in the Object type box.
If you copy information between Excel or any program that supports OLE, such as Word, you can copy the information as either a linked object or an embedded object. When to use linked objects If you want the information in your destination file to be updated when the data in the source file changes, use linked objects.
Ensure that memory is adequate Make sure that you have enough memory to run the source program.
Close other programs to free up memory, if necessary.
Switch to the source program, and close any open dialog boxes.
Changing the way that an OLE object is displayed You can display a linked object or embedded object in a workbook exactly as it appears in the source program or as an icon.