It's kinda a rhetorical device and is for style more than content. It basically means something is correct. "Indeed" strengthens the following part of the sentences and emphasizes its importance." So it basically adds emphasis in a sentence to what follows "indeed." http://answers.yahoo.com/question/index?qid=20110626135911AApB6p8 It can also be used as a response to show agreement. "The weather is nice today!" "Indeed." (Yes, it is.)

Indeed is used in conversation as a rejoinder, similar in function to "Yes, it is" or "Yes, that's right." This is the toughest assignment I've ever had. Indeed! Looks like the Canadians are out of the World Juniors... Indeed... I use this a lot. I think it's used more in polite / formal situations, to show strong or enthusiastic agreement. There are other uses but primarily -- in speaking -- it's used as a rejoinder. A rejoinder is a set of common answer and responses: Thanks! You're welcome! Sorry. That's okay. Nice to meet you. Nice to meet you, too. Cold out today, huh? Yes, indeed!