In a grounded-emitter transistor circuit, such as the light-switch circuit shown, as the base voltage rises, the emitter and collector currents rise exponentially. The collector voltage drops because of reduced resistance from collector to emitter. If the voltage difference between the collector and emitter were zero (or near zero), the collector current would be limited only by the load resistance (light bulb) and the supply voltage. This is called saturation because current is flowing from collector to emitter freely. When saturated, the switch is said to be on.

Why does the collector voltage drop in grounded-emitter transistor circuits?