Starter solenoid

Question on the Starter solenoid. I drew on the picture as I was not sure if all is correct. The big red wire from the battery is hot. The little medium thick red wire from the fuse box is hot. This seems correct. But here is what is puzzling me. The little white wire with the red strip is hot. When this white wire is connected to the starter solenoid it energizes the yellow wire through the solenoid. Is this supposed to happen? See picture for my notes.

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