The hexagonal shank provides a surface for the machine chuck (or drive handle) to grip the cutter securely.
The shank has 6 flat sides which makes it easier to be gripped/held. Hexagonal shanks are usually measured across their flats.
Tip
The tip of the cutter helps the tool to find the centre of the machined hole to give an equal and accurate chamfered edge.
Cutting edge
The cutting edge removes any burrs and leaves the edge of the machined hole with a chamfer.
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Elliptical hole
The elliptical or anti-vibration through hole removes freshly cut material away from the cutting edge, preventing the tool becoming clogged.
The position of the hole in relation to the head of the tool means that it cuts cleanly and without chatter.