A Security Group is used to allow or deny requests coming in (ingress) and/or requests going out (egress). For example, a Security Group could be used to only allow requests within a certain IP address range to come in (ingress) and go out (egress) of an EC2 Instance.

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This assumes you have already configured the aws command line tool. If not, check out my article on Getting Started with the AWS CLI.

The aws ec2 create-security-group command can be used to create a new EC2 security group.

~]$ aws ec2 create-security-group --group-name my-security-group --description "My security group"
{
    "GroupId": "sg-071234ca116e3abcd"
}

If you want to include tags, such as Name, you'll do something like this.

~]$ aws ec2 create-security-group --group-name my-security-group --description "My security group" --tag-specifications 'ResourceType=security-group,Tags=[{Key=Name,Value=mysg},{Key=department,Value=IT}]'
{
    "GroupId": "sg-071234ca116e3abcd",
    "Tags": [
        {
            "Key": "Name",
            "Value": "mysg"
        },
        {
            "Key": "department",
            "Value": "IT"
        }
    ]
}

The aws ec2 describe-security-groups command can be used to list your EC2 security groups.

aws ec2 describe-security-groups

Something like this should be returned. Since no rules were included, by default, there are no inbound rules ("IpPermission": []) and egress (outbound) is allowed for all.

{
    "SecurityGroups": [
        {
            "Description": "My security group",
            "GroupName": "my-security-group",
            "IpPermissions": [],
            "OwnerId": "713123474252",
            "GroupId": "sg-071234ca116e3abcd",
            "IpPermissionsEgress": [
                {
                    "IpProtocol": "-1",
                    "IpRanges": [
                        {
                            "CidrIp": "0.0.0.0/0"
                        }
                    ],
                    "Ipv6Ranges": [],
                    "PrefixListIds": [],
                    "UserIdGroupPairs": []
                }
            ],
            "VpcId": "vpc-011234cfa335abcd1"
        }
    ]
}