The fact that common words tend to have multiple meanings can lead to ambiguity, a situation in which two or more equally legitimate readings exist. In many instances, any potential ambiguity is easily resolved. The kids played in the snow. The school had many poor students on scholarships. The sentence is ambiguous.
Readers draw on prior knowledge and past experience to infer the appropriate meaning.
Some of the most striking examples of ambiguity of word meaning can be seen in headlines. At first glance, this headline refers to an attack by an irate suitor. In the context of the news at the time, the headline referred to a convicted killer's scheduled execution. They infer meaning from contextual clues, whether on the page or, in this case, from our prior knowledge and the news of the day. Examples such as this make clear that we do not simply read words so much as interpret them.