How does a PreparedStatement avoid or prevent SQL injection?

Consider two ways of doing the same thing:

PreparedStatement stmt = conn.createStatement("INSERT INTO students VALUES('" + user + "')");
stmt.execute();

Or

PreparedStatement stmt = conn.prepareStatement("INSERT INTO student VALUES(?)");
stmt.setString(1, user);
stmt.execute();

If “user” came from user input and the user input was

Robert'); DROP TABLE students; --

Then in the first instance, you’d be hosed. In the second, you’d be safe and Little Bobby Tables would be registered for your school.

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