How does a STO work?

Could you please elaborate on how a Security Token Offering, or STO, functions? I'm curious about the process involved, from the initial creation of the token to its distribution and trading on secondary markets. How does it differ from an ICO, and what are the key benefits and risks associated with STOs for both investors and issuers? Additionally, what regulatory frameworks govern STOs, and how do they ensure compliance and protect investors' interests?