The secant theorem states that for two non-parallel secants $AB$ and $CD$ intersecting at point $P$, either inside or outside the circle, the relationship:
We will draw two figures for this theorem, in the first case the secants meet at point $P$ external to the circle, and in the second case they intersect at point $P$ which is internal to the circle. In both cases lines $BD$ and $AC$ are joined. Both figures are shown below:
$Figure-1$
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$Figure-2$
$\underline{Proof}$
In $Fig.\ 1$, $\angle BDC + \angle BAC = 180^\circ$ and $\angle PAC + \angle BAC = 180^\circ$
$\therefore \angle BDC = \angle PAC$
Similarly,
$\angle DBA = \angle PCA$
$\therefore \triangle PCA \sim \triangle PBD$
In $Fig.\ 2$,
$\angle PAC = \angle PDB$
$\angle PBD = \angle PCA$
Therefore, $\triangle PCA \sim \triangle PBD$
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Therefore, in both the cases corresponding sides are in proportion, that is:
If a secant $AB$ to a circle meets a tangent $PT$ to the circle at point $P$, then:
$\overline{PA}.\overline{PB} = \overline{PT}^2$
It is easy to see from $Fig.\ 1$ that if you rotate $PD$ about point $P$ such that it becomes a tangent to the given circle, points $C$ and $D$ coincide at $T$, the point of tangent, and $PC$ and $PD$ become equal to $PT$, therefore,
$\overline{PA}.\overline{PB} = \overline{PT}^2$
We will also see a different approach to this proof below.
We will draw a circle with a point $P$ external to it. From $P$ we will draw a secant $PB$ to intersect the circle at $A$ and $B$ and a tangent $PT$ touching the circle at $T$, as shown below:
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Considering $\triangle s\ PTA$ and $PBT$,
$\angle P$ is common.
$\angle TBP = \angle ATP$ (angles in alternate segment, as proven .)