I am trying to make simple app that allows one to compare image to transparent PNG templates, by dragging the template over picture. For this I need a way to create a PictureBox that will contain the PNG image and be transparent where the the png is transparent. Everything works fine but the transparency part: When I load a PNG image to the PictureBox (background color is set to transparent) it shows the background color of the containing panel rather than the image that it hovers.
I searched but only found a way to make the PictureBox completely transparent.