Marijuana also known as Cannabis has delta-9-tetrahydrocannabinol (THC) which post usage gives the feeling of high. Being legalized in States for Medical purposes Marijuana is already on move amongst people who love trading and they are enchasing the opportunity big way. According to market research organizations the sales of Marijuana has grown over 25 % in 2016, and it is further increasing to hit $21.8 billion by 2020.
Marijuana as an asset
Marijuana stocks are high-risk assets due to the increase in acceptance of Marijuana amongst people especially the current generation. According to market research survey, there’s a huge opportunity in front of the Marijuana companies.
Investing in Marijuana stock is interesting and profitable both as the US Marijuana Index established in 2015 has seen the highs. The legalization is yet to add to the index, but even before that, the Market Cap was around $30 Million which is quite high. There are many organizations in the stock trading of Marijuana, and one can take a dive through an online broker. Many Biopharma organizations also have Marijuana based drugs in their listings. Marijuana market witnesses many small players with a small market share and this makes them less eligible to trade on over the counter exchanges than the main exchange.
Be careful with your decisions
Over the counter, exchanges are being backed by Venture capitalists who invest a pool of funds in such areas. They get protected from the regulatory provisions, and this is a note of caution for the investors. This is a point where investors need to analyze and decide whether to go with a particular stock as it may be tempting but they might be taken for a ride if the operators fleece the investors like in normal trading scenarios. Due to limited awareness of stock trading of Marijuana and risk involved the investors may get dumped when the operator has made a substantial profit.
Investors who want to make wise decisions and enjoy stock trading of Marijuana should check the Marijuana index on a regular basis just like they check their stocks and those who are trying to enter the market, it’s a very special market, and if you are a stock person, then this is the right platform. Investors can also keep track of stock indices related to cannabis stocks in the states.