What Does Replace As You Type Option Mean

In Microsoft word 2010 we have auto correct options that will do different auto corrections as selected. We have one of the options as Replace As you type as

Replace As You Type Means:

• "Straight quotes" with “smart quotes”    Replaces straight quotation marks ( " " ) and straight apostrophes ( ' ) with curved, open- and closed-quotation marks ( ) and curved apostrophes ( ).
• Fractions (1/2) with fraction character (½)    Replaces typed fractions (1/2) with a single character fraction (½).
•  NOTE    This option replaces only the following typed fractions: 1/4, 1/2, and 3/4.
• *Bold* and _italic_ with real formatting    Applies bold font to any text enclosed in asterisks (*); applies italic font to any text enclosed in underscores (_). For example, *computer* becomes computer and _computer_ becomes computer.
• Internet and network paths with hyperlinks    Replaces typed Internet addresses, network paths, and e-mail addresses with hyperlinks.
• Ordinals (1st) with superscript    Replaces ordinal numbers that show the relative position of an item in a sequence (for example, 1st, 2nd, or 3rd) with superscript ( ).
• Hyphens (--) with dash (—)    Replaces a double hyphen (--) with an em dash (—); replaces a single hyphen with a space before and after ( - ) with an en dash (–).

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