Why would you want to do this?
Answer: To create a Vector Graphics file of any size. When you increase the size of the image, there is no loss of clarity as the shape is made by a calculation
When is this useful?
Answer: For Company Logos and Extra Large Advertising Boards
1. Create some text in a Layer
2. Press and hold CTRL Key then click on the Layer containing the Text
3. Now click the Path Tab (Bottom Right)
4. Click Make Work Path (again Bottom Right)
5. This can now be converted into a shape using Edit –> Create Custom Shape
6. Now if you hide the TEXT layer
7. Select the Custom Shape Tool
8. Click the DropDown for Custom Shapes and your Shape is include
9. Drag and Create your Custom Shape
I used this method to create my advertising board which is now displayed at Enfield Cricket Club