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On a hub, everything one device sends reaches every other device, so if two devices send at the same moment their signals collide. Ethernet expects this and handles it with CSMA/CD: carrier sense, multiple access, collision detection.
Multiple access: many devices share the same network. Carrier sense: before sending, a device listens, and if someone else is sending, it waits. Collision detection: if a device detects a collision while sending, it stops. Both frames are ruined, no matter who started first, and both must be sent again. Each device then picks a random number and counts down. The one with the smaller number sends first; the other, when its count ends, hears the line in use and waits until it is free. If both waited the same fixed time, they would just collide again.
A broadcast is a frame for every device on the network. Its destination is the MAC address FF:FF:FF:FF:FF:FF, all 1s, and every device that receives it processes it.
The area where devices can collide is a collision domain. Replacing the hub with a switch does away with collisions (each device gets its own link to the switch), and with much of the security worry of a hub. Broadcasts remain: a switch still sends them out of every port.
A local area network is all the devices that reach each other directly like this, and it ends at the router. Collisions and broadcasts stop there. That is why networks are split into LANs: one network the size of the internet would drown in broadcasts. Count the LANs by counting the networks each router separates.
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