The manual which came with your camera (or the online version if there was not a printed manual in the box) should specify whether or not one can shoot in RAW with the SX740 HS. Most point and shoot cameras do NOT offer this option, just jpeg.
What is so significant about RAW? For serious amateurs and professionals, often there is a need or desire to extract more details and information from the raw file of an image they've shot, which then can then give them the opportunity to shape it to their preference (in terms of highlights, shadows, exposure values, etc.). JPEG does a lot of in-camera processing so that the person taking the shot doesn't need to do so, and most of the time this is perfectly fine, but when someone is shooting something where they may be expecting to display it in a gallery or have someone paying them for their work, they want to have more control over the final image, getting the tonal quality the way they envisioned it and/or saw it in reality and making adjustments to the dynamics of the scene's overall range. Leaving everything up to the camera to choose via jpeg processing may not always be optimal. When shooting portraits or images of people, it is always desirable to have more control over skin tones and other exposure values in an image. Most of the time this doesn't matter when someone is shooting casual snapshots and such, but when shooting fine-art quality images, wedding photography, wildlife photography, work for which one is being paid, etc., etc., it can make a difference.
What is so significant about RAW? For serious amateurs and professionals, often there is a need or desire to extract more details and information from the raw file of an image they've shot, which then can then give them the opportunity to shape it to their preference (in terms of highlights, shadows, exposure values, etc.). JPEG does a lot of in-camera processing so that the person taking the shot doesn't need to do so, and most of the time this is perfectly fine, but when someone is shooting something where they may be expecting to display it in a gallery or have someone paying them for their work, they want to have more control over the final image, getting the tonal quality the way they envisioned it and/or saw it in reality and making adjustments to the dynamics of the scene's overall range. Leaving everything up to the camera to choose via jpeg processing may not always be optimal. When shooting portraits or images of people, it is always desirable to have more control over skin tones and other exposure values in an image. Most of the time this doesn't matter when someone is shooting casual snapshots and such, but when shooting fine-art quality images, wedding photography, wildlife photography, work for which one is being paid, etc., etc., it can make a difference.
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