An instance of a delegate is created by a delegate-creation-expression (Section 7.5.10.3). The newly created delegate instance then refers to either:

• The static method referenced in the delegate-creation-expression, or
• The target object (which cannot be null) and instance method referenced in the delegate-creation-expression, or
• Another delegate

For example:

delegate void D(int x);
class C
{
   public static void M1(int i) {...}
   public void M2(int i) {...}
}
class Test
{
   static void Main() { 
      D cd1 = new D(C.M1);      // static method
      Test t = new C();
      D cd2 = new D(t.M2);      // instance method
      D cd3 = new D(cd2);      // another delegate
   }
}

Once instantiated, delegate instances always refer to the same target object and method. Remember, when two delegates are combined, or one is removed from another, a new delegate results with its own invocation list; the invocation lists of the delegates combined or removed remain unchanged.