Pros and Cons of the New Folder Tool
An icon for the New Folder tool will be available for use to the right of the Upload Document icon, if the library administrator allows the creation of new folders in the document library (accessible from the Document Library Settings page, Advanced Settings link). If the New Folder icon is clicked, the folder can then be named and used to store documents or other folders. Folders can have unique permissions assigned to them, users can create alerts based on the contents of folders, and they can be connected to Outlook, but they are not as manageable as standard items in a document library. For example, metadata columns added to a document library will not be editable for a folder in that document library. ...
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