Insulators have valence shells that are more than half full of electrons and, as such, are tightly bound to the nucleus and difficult to move from one atom to another.

A semiconductor is a material that has a limited ability to conduct electrical current with conductivity between that of an insulator and that of a conductor. Silicon, a cheap and abundant material, is the most used semiconductor material although other materials are used in the electronics components made from semiconductors. The primary advantages of a semiconductor over a conductor is that the conductivity of a semiconductor can be varied under an external electrical field giving engineers precise control over complex circuits and, unlike conductors like metals, a semiconductor's conductivity increases with increased temperatures.

A transformer utilizes an inductor to increase or decrease the voltage in a circuit. AC flowing in a coil wrapped around an iron core magnetizes the core causing it to produce a magnetic field. This magnetic field generates a voltage in a nearby coil of wire and, depending on the number of turns in the wire of the primary (source) and secondary coils and their proximity, voltage is induced in the secondary coil.

Direct current flows in only one direction in a circuit, from the negative terminal of the voltage source to the positive. A common source of direct current (DC) is a battery.

A closed circuit is a complete loop or path that electricity follows. It consists of a source of voltage, a load, and connective conductors. If the circuit is interrupted, if a wire is disconnected or cut for example, it becomes an open circuit and no electricity will flow.