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When a particular restriction enzyme cuts strand of DNA, overhanging stretches or sticky ends are formed.
Reason: Some restriction enzymes cut the strand of DNA a little away from the centre of the palindromic site.
Detailed Solution
Both statements are correct and the reason explains the assertion. Sticky ends are produced by restriction enzymes that cut the DNA strand a little away from the centre of the palindromic site, but between the same two bases on the opposite strand.