Wiring installation codes and regulations are intended to protect people and property from electrical shock and fire hazards. They are usually based on a model code (with or without local amendments) produced by a national or international standards organisation, such as the IEC.
Insulated cables are rated by their allowable operating voltage and their maximum operating temperature at the conductor surface. A cable may carry multiple usage ratings for applications, for example, one rating for dry installations and another when exposed to moisture or oil.
Generally, single conductor building wire in small sizes is solid wire, since the wiring is not required to be very flexible. Building wire conductors larger than 10 AWG (or about 6 mm²) are stranded for flexibility during installation, but are not sufficiently pliable to use as appliance cord.
The environment of the installed wires determine how much current a cable is permitted to carry. Because multiple conductors bundled in a cable cannot dissipate heat as easily as single insulated conductors, those circuits are always rated at a lower "ampacity". Tables in electrical safety codes give the maximum allowable current based on size of conductor, voltage potential, insulation type and thickness, and the temperature rating of the cable itself. The allowable current will also be different for wet or dry locations, for hot (attic) or cool (underground) locations. In a run of cable through several areas, the part with the lowest rating becomes the rating of the overall run.
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