A more thorough explanation:

Securities are financial instruments that represent ownership or debt in a company or organization. They are bought and sold in the financial markets, and their value depends on the financial condition of the issuer, management, and other factors.

Examples of securities include:

• Stocks
• Bonds
• Notes
• Certificates of interest or participation in profit sharing agreements
• Collateral trust certificates
• Preorganization certificates or subscriptions
• Transferable shares
• Investment contracts
• Voting trust certificates
• Certificates of deposit for a security
• Fractional undivided interest in gas, oil, or other mineral rights

Securities laws and regulations aim to ensure that investors receive accurate and necessary information regarding the type and value of the interest under consideration for purchase. Securities regulations focus mainly on the market for common stocks. Both federal and state laws regulate securities.

For example, the Federal Securities Act of 1933 regulates the public offering and sale of securities in interstate commerce. This Act also prohibits the offer or sale of a security not registered with the Securities Exchange Commission and requires the disclosure of certain information to the prospective securities' purchaser. The Securities Exchange Act of 1934 regulates officers, directors, and principal shareholders in an attempt to maintain fair and honest markets. The Act requires that issuers, subject to certain exemptions, register with the SEC if they want to have their securities traded on a national exchange.

Overall, securities laws exist to protect investors and ensure that they have access to accurate and reliable information when making investment decisions.