This allows for the aqueous layer to be extracted, and the remaining organic layer, containing the product, is collected. Because the methylene chloride is more dense than water, it sinks to the bottom of the separatory funnel and can be collected.
Usually. Most organic solvents (hydrocarbons) are non-polar and so are immiscible with water, and so form layers (like oil and water). Compounds like diethyl ether ("ether") and ethyl acetate (EtOAc) are less dense than water, and so appear in the top layer when mixed with water.
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