What is the difference between:
- "How it works?"
- "How does it work?"
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Two sorts of clause employ IPs: questions and free relative clauses. In both sorts of clause the IP represents a constituent of an ordinary declarative clause, ‘moved’ to the beginning of the clause from the place where the constituent would normally stand:
But the two sorts of clause play very different roles, and have different syntactic structures:
'How it works' used in an interrogative phrase is something you may not find very commonly spoken amongst native speakers.
But then again, it may be a part of an interrogative sentence, as in:
Here, 'how it works' is correct because it isn't a direct part of the question being asked. The question asked is, "Will you tell me _?" 'How it works' is just that part of the sentence which goes into the blank, as an assertive phrase.
'How does it work' is what you'd say while asking somebody about the way it works. This construction is used in interrogative sentences.
I'll correct Maulik's second answer:
You see that he sets the expressions in context, which is always very important.
If you're using a sentence fragment rather than a sentence proper in your first example (say as a section heading), you'd drop the question mark (and probably the period):