Medical marijuana stocks are smoking now that an increasing number of states are voting for legal marijuana or the legalization of cannabis — but even the best marijuana stocks also come with plenty of risks.
As part of a brand-new industry, marijuana stocks are, shall we say, immature. The best, most heavily traded options for medical marijuana stocks all trade over-the-counter. As penny stocks, medical marijuana stocks aren’t subject to the same regulatory scrutiny or listing requirements of stocks trading on a major exchange like the Nasdaq or New York Stock Exchange.
As always, buyer beware — but it wouldn’t hurt to be extra careful when it comes to investing in over-the-counter medical marijuana stocks.
Be that as it may, the burgeoning legal marijuana industry will surely make big winners of some medical marijuana stocks. And tapping the equity market for the capital to grow a medical marijuana business could give these companies a competitive edge.
Furthermore, as penny stocks, medical marijuana stocks will be extremely volatile. That increases the risk that you’ll buy high and sell low — but it also means medical marijuana stocks could generate 10-bagger returns.
So if you are looking for the best marijuana stocks, these are the most established options.