PDF encryption sets an open password and cryptographic protection so a viewer cannot directly read the document without the password. It adds access friction in a controlled workflow, but security depends on password strength, algorithm, distribution, and how recipients store the secret.
Password protection is not a digital signature and cannot prevent an authorized reader from taking screenshots, copying pages, or redistributing content. Sensitive material also needs secure transfer, least privilege, expiry, and revocation. Do not send the file and password in one message.