Most people envision stock or bonds when thinking of securities.
Any person who offers or sells any type of a security must comply with the securities laws and regulations of each applicable securities authority. Compliance with the laws of one securities authority does not necessarily constitute compliance with the laws of another. At a minimum, therefore, sellers of securities must comply with at least two separate set of laws, i.e., the federal law and the law of the state in which the securities are to be offered and sold. If a broker-dealer firm assists in the selling effort, the rules of the National Association of Securities Dealers additionally come into play. Any time an offering of securities is made the seller must register the offering with applicable securities authorities, or an exemption from registration must be found.