Securities Offerings Overview

A security is a vehicle through which investors can own a share in a business. Securities include stocks, bonds, notes, certificates, and contracts. They are bought and sold either directly by the company or through a trading exchange such as the NASDAQ stock market.

Securities offerings are extremely complicated processes, requiring strict compliance with many legal regulations. While states regulate securities, the primary regulatory agency is the U.S. Securities and Exchange Commission (SEC). The SEC requires that issuing companies provide detailed information to investors via publicly available filings. Shareholders may sue the company that issued their securities if they believe they have been misled, or pressure company managers to improve results.