What are cannabis stocks?

For starters, cannabis stocks are shares of companies that are involved in some way in the legal marijuana industry. This can include growers, processors, retail outlets, and even businesses that provide services to the industry such as financing and security.

What should you know before investing in marijuana stocks?

Let’s cover some of the basics you need to know before investing in marijuana stocks. The marijuana industry is divided into three broad categories. Marijuana growers and retailers cultivate and package cannabis products and sell them to consumers. Biotechnology companies develop and market cannabis-based pharmaceutical drugs.

What's the difference between medical marijuana and recreational cannabis stocks?

Whereas medical marijuana stocks involve companies dedicated to the medicinal and therapeutic benefits of the drug, recreational cannabis companies cover products for personal enjoyment. On the medical side, there's also a growing market for CBD products.

Are Us-listed cannabis stocks a disappointment?

The first wave of U.S.-listed cannabis stocks have been something of a disappointment. Shares of high-growth, multi-state operators (MSO) have slumped over the past year as cannabis producers face pricing pressures in a fiercely competitive U.S. market.