BA vs. OAuth, SAML, etc

I read from an expert on another thread that Basic Authrtication will send the password directly to the server on the wire.

However, OAuth and SAML or Kerberos will use third party servers to verify pw's but not transmit the pw on the wire

My Question:  How do the more complex security servers avoid transmitting a pw on the wire,

Did I read the post incorrectly?  (Is the pw sent to the third party verification server, but not the http server ?

Anthony LuciaAsked:
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Jens FiedererTest Developer/ValidatorCommented:
More comples security servers avoid transmitting a pw on the wire in the clear by either encrypting it or by simply USING it.   For example, Kerberos will send the client information that does not contain the pw, but is encrypted USING the pw, so the client is unable to use the information without decrypting it .... for which the correct pw is necessary.

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