With a line or area feature selected click this option to create a new set of point features at each vertex in the selected feature.
The Create New Points from Selected Area and Line Features is available as a 
button in the Digitizer (EDIT) toolbar, or from the Advanced Feature Creation Digitizer sub-menu. First select a line or area feature to use as data input before choosing this tool.
See Also Centroids and Insert Vertices at Intersections