Both statements are misleading. The first is simply not true, and the second is not inclusive of other valid uses. The truth is that dies are made in varying external shapes, regardless of their intended uses, and with different geometry where the threads start, which can be positive rake or negative rake. Different tool holding needs (like working in tight quarters) require different driving tools, and dies are manufactured for those needs. No offense to you intended, Cooter. It is a common misunderstanding that has been carried down for many decades. It is simple, easy to remember, and incomplete. I had the same understanding for decades, until the truth was explained to me. The reality is more complicated...
Here is a previous posting that goes into more detail:
I have told by my tool supplier that the dies with the hex OD are only to be used for repairing damaged threads!! That said you need a die made for cutting threads and of course they cost more. I needed a 1/4-20 die could not find one locally so checked McMaster $32.00 range!!!
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