What is SAM?

                                   • SAM (Security Account Manager)

 There are three components of Windows Security:
• LSA (Local Security Authority)
• SAM (Security Account Manager)
• SRM (Security Reference Monitor)

2)• SAM (Security Account Manager)

• The Security Accounts Manager is a database in the Windows
operating system (OS) that contains user names and passwords.
SAM is part of the registry and can be found on the hard disk.


• This service is responsible for making the connection to the SAMdatabase
(Contains available user-accounts and groups). The SAMdatabase
can either be placed in the local registry or in the Active
Directory (If available). When the service has made the connection
it announces to the system that the SAM-database is available, so
other services can start accessing the SAM-database. 

• In the SAM, each user account can be assigned a Windows password
which is in encrypted form. If someone attempts to log on to the
system and the user name and associated passwords match an entry in
the SAM, a sequence of events takes place ultimately allowing that
person access to the system. If the user name or passwords do not
properly match any entry in the SAM, an error message is returned
requesting that the information be entered again




• When you make a New User Account with a Password, it gets stored in
the SAM File. 


• Windows Security Files are located at
“C:\Windows\System32\Config\SAM”
• The moment operating system starts, the SAM file becomes
inaccessible

referred from books and articles