How does DMA work?

There are signals DACK, DRQ, and TC. When a peripheral wants to move a byte or 2 bytes into memory (is dependent on whether 8 bit or 16 bit DMA channel is in use -- 0,1,2,3 are 8-bit, 5,6,7 are 16-bit), it issues DRQ. DMA controller chats with CPU and after some time DMA controller issues DACK. Seeing DACK, the peripheral puts it's byte on data bus, DMA controller takes it and puts it in memory. If it was the last byte/Word to move, DMA controller sets up also TC during the DACK. When peripheral sees TC, it is possible it will not want any more movements,