The document discusses the skin effect phenomenon in conductors carrying alternating current. It defines skin effect as the tendency of AC to flow mostly near the surface of a conductor. It then defines and explains skin depth - the depth at which current density decreases to 1/e of its surface value - and how it depends on frequency, resistivity, and permeability. Factors like eddy currents induced by the changing magnetic field are said to cause the skin effect. The document also provides formulas to calculate skin depth and gives an example using gold at 60 Hz.