There are things. Let us call each thing a token. Let us begin with the smallest unit – the atom.
There are unfathomable, countless multitude of atoms in the universe. Yet, as we look at each atom carefully we see similarities and differences between them. Let us call one a and another b. a and b are dissimilar, in fact, so dissimilar that we will continue to call them a and b.
We look at another atom but this one is similar to a and different to b. So maybe we shall call it a1. After a while we have a whole bunch of a grouped together. Here, they can be called A to represent all of the tokens called a. This big A we shall call type that which is a general representation of all tokens.
This A, of course, does not exist in the world, only as a classification or categorisation within the mind of the thinker. It is a concept that becomes a thing by virtue of being the actual letter A. It is in the sign that we mistake it for being real. The concept until being turned into a sign had no reality other than being a process within the mind/brain. The sign makes it “materialise” so to speak.
Furthermore, the person who speaks A has not seen all the tokens of a but generalises this to all the a. A is thus a “rough estimate” of any a mentioned. Even if we are talking about a specific instance of a we cannot help but be drawn into the estimation that is A.
This is the quality of language that is continually (dis)missed, in all language use, ordinary, philosophical, or otherwise.