There are two types
of parameter files.
Server parameter
file (SPFILE): It is a binary file that
can be written to and read by the database server and must not be edited
manually. The default name of this file, which is automatically sought at
startup, is spfile<SID>.ora.
Text initialization
parameter file (PFILE): This type of initialization parameter file can be read
by the database server, but it is not written to by the server. The
initialization parameter settings must be set and changed manually by using a
text editor so that they are persistent across shutdown and startup. The
default name of this file (which is automatically sought at startup if an
SPFILE is not found) is init<SID>.ora.
It is recommended
that you create an SPFILE as a dynamic way to maintain initialization
parameters. By using an SPFILE, you can store and manage your initialization
parameters persistently in a server-side disk file.