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10 important things every marijuana investor must know
Growing your stocks in the marijuana industry is quite different from other industries. Unlike other fields, the marijuana business is oftentimes threatened by a lot of government policies and religious sentiments. Read more to discover the 10 important things many cannabis companies won’t tell you;
According to statistics, the past five years has been great for GW Pharmaceuticals (cannabinoid-based drug creator) the company had nearly 1,400% increase.
Growth-wise, it’s very hard to find any other industry that’s been piling up funds on a yearly basis swifter than marijuana and to add, its driving big investors crazy, as we speak.
Before we move further, I must state that there are different perspectives to investing in marijuana stocks and there’s more to marijuana stocks than just ‘the oftentimes celebrated’ increase in stock values. Below are the five things you need to consider before investing in marijuana;
A higher percentage of the populace supports the legalization of marijuana
Not all but most people in America support the legalization of marijuana across the country. This is because they see many advantages in the substance and research has it that if completely legalized, marijuana would be bought at the same rate as alcohol. On conducting the polls for over five decades, it has been gathered that up to 64% of respondents as of Oct. 2017 would love to see the legalization of weed nationwide. There has been a percentage increase from the usual value, 25% back then in 1995
There are vast marijuana shares to pick from
With GW Pharmaceuticals being one of the biggest pot stocks ($3.7 billion), there are a lot of marijuana stocks the general public are not aware of that exist.
From stocks with small market caps to those with large market capa, you will see if you seek the right quarters. However, for those who are looking for marijuana stocks, check our article on the 50 list of marijuana stocks
Majority of marijuana stocks are on OTC exchanges
Most marijuana stocks trade on the over-the-counter boards because the big fishes like the Nasdaq and NYSE have market-cap and share-cost conditions. OTC stocks make it quite hard for investors to get current and accurate data on the marijuana stocks when considering their portfolios.
However, over the years, OTC exchanges have been focusing more on their listing and reporting standards.
The market is beginning to be monopolistic
The status quo in the marijuana industry used to leave the retailing part with smaller businesses; thereby giving the bigger companies the task of growing and processing the substance. However, states like Washington and Colorado have started seeing larger infiltration of big businesses. A suspension on frivolous pot licenses has given big business the audacity to sweep up many licenses and flooding the market with their product. This move will surely give bigger companies a higher chance of monopolizing the industry.
Cannabis companies have no or little right of entry to banking
Since cannabis trade is still branded illegal on the national level, marijuana stocks don’t really have much access to financial institutions. This little access to banking has negative influence on the marijuana business and most cannabis businesses are forced to deal mainly in cash which is a major security issue.