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They are used to "transform" voltage from one level to another, usually from a higher voltage to a lower voltage. They do this by applying the principle of magnetic induction between coils to convert voltage and/or current levels.
In this way, they are a passive device which changes alternating current (otherwise known as "AC") electric energy from one circuit into another through electromagnetic induction. This device normally consists of a ferromagnetic core and two or more coils called "windings". A changing current in the primary winding creates an alternating magnetic field in the core. In turn, the core multiplies this field and couples the most of the flux through the secondary windings. This in turn induces alternating voltage (or emf) in each of the secondary coils.
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