How to invest in marijuana stocks?

Marijuana stocks are the best way to get started for a penny stock investor. If you have not invested in penny stocks till date, this could be a great opportunity for you to explore. Marijuana stocks are super-hot stocks right now. The growth of legalized pot in various states of the US and Canada for medical and recreational use has led the investors to focus on the stocks.

If you’re interested to invest in marijuana penny stocks but don’t know the right way to begin, here is the full information about them. This sector is in trend right now due to legalization of pot in various forms. Some projects are new but require market capitalization to increase the annual marijuana stocks towards a much higher level. The marijuana market is expected to grow up to $150 billion or more after a decade, or so. As the sector is hot, the stocks could be hard to handle at times. The investors new to the marijuana world need to know what all to look and what to ignore while buying these stocks.

Marijuana Industry Basics

Marijuana have always been in trend for recreational purposes as a drug. In the present time, there are medications formulated by the use of marijuana and these trends have made it as a baseline for the stocks to grow. The dynamics are changing on the rapid basis and medical marijuana has become legalized in 30+ countries on global basis. The trend of recreational basis is common only in a few nations but the US and Canadian permissions have given a hint for the number to grow. Hemp was legalized at the national level in many US states in December 2018.

Tetrahydrocannabinol (THC) is the primary chemical responsible for causing the ‘high factor’ for the consumers. The chemical ingredient cannabinol (CBD) is not as psychoactive as THC and have been quite useful in the medical researches to control the problems like epilepsy, insomnia, and inflammation.

There are many products made from marijuana, like CBD oils, edibles, concentrates used in creams, lotions and vaping, beverages, flower, and many other forms. The marijuana industry stocks are involved in manufacturing and marketing of these products.

Investing in marijuana stocks

After getting the basics about marijuana industry, it is important to note the important elements of the industry. There are majorly three types of companies which could be considered in the investment of marijuana stocks:

  1. Marijuana growing companies: These companies are associated with the cultivation of marijuana in the indoor facilities and the greenhouses.
  2. Providers of ancillary products and services: These companies provide key services or products to the marijuana industry, like lighting systems, packaging, distribution, consultation, hydroponics etc.
  3. Biotech and Pharmaceutical companies: There are companies taking the medical use of marijuana for its benefit in the therapeutic industry. The medical use of marijuana is carried forward by many companies all over the globe and drugs are being manufactured for the treatment of chronic diseases.
About Travis 491 Articles
Started investing in 2013 with $8,500 I turned that into 180k within a few months. Every year since I have increased the amount of money made from micro cap stocks and stock options.

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