When wiring a house, there are many types of wire to choose from, some copper, others aluminum, some rated for outdoors, and others indoors. In general, however, there are only a couple of varieties used for wiring a residential home.
Romex, (shown here in yellow), is the trade name for a type of electrical conductor with non-metallic sheathing, that is commonly used as residential branch wiring. In fact, Romex will be the most common cable you'll use in wiring a house.
NM, NMD, NMB and NMC conductors, are composed of two or more insulated conductors contained in a non-metallic sheath. The coating on NMC cable is non-conducting, flame-resistant and moisture-resistant. Unlike other cables commonly found in homes, they are permitted in damp environments, such as basements.
Underground feeder conductors appear similar to NM cables, except that UF cables, contain a solid plastic core and cannot be “rolled” between fingers.
Romex is used for most lighting and outlet circuits in your home. Romex will be labeled with, for example, “14-2" or "12-3". The first number indicates the gauge of the wire. Your choices are typically 10, 12, or 14 gauge. The second number indicates the number of conductors (excluding the ground wire excluding the ground wire). A 12-2 Romex will have a black, (hot) and a white (neutral) wire as well as an unsheathed copper wire for ground. A 12-3 Romex, will have a black (hot), a red, (hot), a white, (neutral), and bare copper.