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Portmanteau Word
A portmanteau word is formed out of parts of other words. Oxbridge is made up from parts of the names of Oxford and Cambridge and refers to either of the two universities. 'Swatch' is a portmanteau word formed from Swiss watch, 'brunch' is formed from Breakfast and lunch.
A 'chocoholic' has a problem with chocolate that is like the addiction of an alcoholic. Portmanteau words offer a quick way of forming new words that are easily understood by virtually everybody.
See Also:
Irony; Hyperbole; Sarcasm; Slang; Jargon; Tautology; Understatement; Litotes; Rhetorical Question; Cliche; Allegory; Malapropism; Spoonerism