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Should You Invest in the Cannabis Industry?

marijuana business investment

There are many people who are now considering investments in the marijuana business. Apparently, others even consider cannabis as the 21st century’s Gold Rush given the fact it has made big companies rise – making the industry an emerging business sector. Truth to be told, many stock holders are now considering a chance for more profits in the segment. When the legalization of marijuana escalated in the United States elections last November 2016, more people came out to support the medicinal compound. Consequently, recreational and medical marijuana markets have been opened.

The Future of Marijuana Stocks

According to forecasts, marijuana stocks may increase in value in the coming years following the strengthening pro-cannabis movement. Take note that this change is not only taking place in United States, but also in other countries. This year marked Germany as among the latest countries to legalize medical marijuana for its residents. Nonetheless, before you even plunge into investing in the marijuana business, you should learn more about the emerging stocks, including the pros and risks.

Reasons to Invest in Marijuana Stocks

There are tons of reasons why as a stock holder, you should reconsider putting a portion of your money in cannabis stocks. Primarily, eight states have already approved marijuana use recreationally. This is on top of 28 states that have approved the plant for medical use. ArcView Market Research even revealed recently that the cannabis market rose to $5.4 billion, an increase by 17 percent two years ago. Since the recreational marijuana use has been allowed in several states, sales of cannabis have almost reached $1 billion per annum.

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Top Companies to Invest In for Marijuana Business

In the Nasdaq bourse, there are several companies that could help you start a marijuana business. By investing into these firms, you may consider a sure way of earning more. You can begin with GW Pharmaceuticals, a firm in United Kingdom that generates medicine for epilepsy based on marijuana. Moreover, you have the company called Insys Therapeutics, which is based in Phoenix and popular for its medicine against cancer pain. The development of its epilepsy drug is underway, which is also based from cannabis.

Moreover, marijuana business through stock investment could also be accommodated by Zynerba Pharmaceuticals. The company is concentrated on creating and marketing therapeutics based on marijuana commercially.  You also have Cara Therapeutics that is known for drugs against pain and also has the purpose of commercializing their products.

According to MarijuanaStocks.com founder, Jason Spatafora, the stocks of the aforementioned firms are not under brokerage. For instance, GW Pharmaceuticals’ stocks are covered by Morgan Stanley and Bank of America. Its stakes also hold the most robust coverage from Wall Street.

Caution in Investing in Cannabis Stocks

There is still a word of caution for people who are interested in investing in marijuana business.  You should beware of stocks that are traded over-the-counter or OTC.  These are stakes that will put your investment at risk since their incapability to join the major bourse shows that they cannot comply with the financial and disclosure requirements of secure stock exchanges. If you want to ensure that you will be safe from these manipulators, you have to consider various things.

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First, you should not trust marijuana stocks with good value that would appear out of the blue. Most likely, you are a target of a promoter. Additionally, always take note of the source. Unknown companies are no-nos. Marijuana business is getting big, which is why you should take advantage of information spread across the web.  It is also imperative to ensure that a trusted accounting firm has signed the documents related to your marijuana stock acquirement. Some apps such as leafedin.org are very critical to finding cannabis near me.

Overall, it could be concluded that marijuana business is the same with other money-risking investments. It also takes consideration of better options and risks.