When a signal is recieved actions can occur including a transtion to another state.  An FSM containing state definitions is a true "state machine".  When running, an FSM is in one state at any given time. 

Each FSM has a "pseudo state" named START.  When a system is running, each of its FSMs is initially in the START state.  The START state is an action list, normally ending with a state transition.
 

A simple START state