The stator is actually sends a DC current. And CDI has nothing to do with your key switch.
Your battery sends a DC current that is what is used for starting the engine. The stator produces power to run everything else including the CDI, lights and charging the battery. I don't get what your saying when you say shut the machine off but the engine still runs, but it has nothing to do with the CDI. Also when you hit the kill button it just grounds the ignition so instead of the power going to the plug it gets grounded to the frame or the engine or wherever it is. So if this doesn't help please tell me why and I will try to explain it better.
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