Oct 8, 2019
A Beginner’s Guide to Investing in the Legal Cannabis Industry
Get all the details on investing in marijuana and the cannabis industry legally.
Legal cannabis is set to become a multi-billion dollar industry in less than a decade, but investors have only been able to invest in cannabis companies for just a few years. We have all the details about recreational and medical marijuana, not to mention explainers on CBD oil, hemp, and other marijuana products. Plus, we break down how to invest in the legal cannabis industry.
Follow the Stash Way!
Remember: All investing involves risk. It’s possible for stocks, bonds, and other securities to lose their value due to changing market conditions.
Stash recommends following the Stash Way, which includes regular investing, diversification, and investing for the long term.
Investing for the long term can help insure that you aren’t locking in your losses due to short term fluctuations in the price of a stock.
Also, check out Portfolio Builder, a new tool that can help you instantly build a diversified portfolio according to your risk profile, as you start your investment journey.
Portfolio Builder portfolios are designed to follow the Stash Way.
Investing in the Legal Cannabis Industry
The Marijuana Business: What You Need to Know
The next gold rush could be green. As attitudes toward recreational cannabis use quickly change, the legal marijuana market is projected to grow into a $25 billion industry within the next three years. The industry is also expected to create hundreds of thousands of new U.S. jobs—although legal issues abound.
The 12 Largest Cannabis Companies in 2024
The largest cannabis companies in North America bring in billions, and investors are taking notice. Find out which companies are leading the pack.
Podcast: Learn About the Business of Marijuana with David Rheins
In this episode of the Teach Me How to Money podcast, David Rheins, the founder and executive director of the Marijuana Business Association, tells us all about the promise and challenges of the marijuana industry. Nearly two-thirds of Americans say marijuana should be legal. However, at the federal level, the government and big banks are far from convinced that marijuana should be a financial force in America.
Cannabis News
In Canada, Marijuana Prohibition is About to Go Up in Smoke
Learn more about how Canada became the second country in the world to end cannabis prohibition on a national scale.
One of the World’s Largest Pot Companies Is Coming to the US
Canopy Growth, one of the largest cannabis companies in North America, received a green light earlier this year for large-scale hemp production in New York State.
Marijuana-Derived Epilepsy Drug Gets Green Light From FDA
The U.S. Food & Drug Administration approved a marijuana-derived drug for the first time. Epidiolex, a medication developed to treat two forms of childhood epilepsy, contains a chemical compound called cannabidiol found in the cannabis plant.
If Cannabis is Illegal Under Federal Law, How Is It Legal to Invest In It?
The cannabis industry is set to be a multi-billion dollar giant by 2027. Although it’s legal in many states, marijuana is still outlawed by the federal government. Learn the legal ins and outs.
Hemp Comes Home: Why Martha Stewart is Partnering with Marijuana Grower Canopy
Lifestyle guru Martha Stewart announced she will partner with marijuana grower Canopy Growth to bring hemp to your home.
Could the ‘Oprah Effect’ Change America’s Attitude Toward Marijuana Legalization?
Talk show host Oprah Winfrey has had a profound effect on numerous industries. If she smokes a little pot now and then, could that help change attitudes?
Subscribe
All episodes are available now. You can listen to Teach Me How to Money right here on our site, and via the podcast apps below.
Find out more about cannabis
How to invest in the legal cannabis industry?
Stash allows you to invest in some of the leading legal cannabis companies through its Corporate Cannabis fund. The fund follows the Prime Alternative Harvest Index, which currently invests in 37 companies involved in the legal market.
What investments in cannabis-related companies does Stash offer?
Through the Corporate Cannabis ETF, Stash allows you to invest in companies including Aurora Cannabis, Canopy Growth, Cronos Group, Green Organic, Tilray, and others. Stash also offers Aurora Cannabis, Canopy Growth, Cronos Group, and Tilray as single stocks.
What is the marijuana industry worth?
According to some, the cannabis industry worldwide could be worth nearly $60 billion in less than a decade. Of course, this depends on a lot of different factors and is not a sure thing.
Is investing in companies involved in medical marijuana safe?
Investing in legal cannabis stocks, whether recreational or medical, can carry more risks than other stocks. In general, marijuana-related stocks can be volatile, meaning share prices can move up or down quickly. These stocks are some of the most volatile on Stash, and there is also some talk of pot stocks being in a market bubble. Remember: Investing in the stock market can always involve losing money.
What cannabis stocks pay dividends?
As a general rule, younger companies don’t pay dividends, because they need any excess cash to fund growth. The small number of publicly-traded cannabis companies are part of an emerging industry. Some larger companies tangentially related to the cannabis industry—for example, companies that provide growing or other equipment—may pay dividends. You can learn about whether a company has paid dividends in the past by doing some research.
What marijuana stocks are on the NASDAQ?
Some of the leading cannabis companies that trade on the NASDAQ, and that are also listed as holdings in the Corporate Cannabis ETF, include Arena Pharmaceuticals, Cronos Group, GW Pharmaceuticals, Tilray, and Zynerba Pharmaceuticals.
Written by
Team Stash
Related Articles
Stocks That Pay Dividends: A Guide to Investing in Dividend Stocks
How To Find Undervalued Stocks: An 8-Step Guide
What Is Passive Investing?
How To Read a Stock Chart: A Beginner’s Guide + Stock Chart Glossary
What Are the Different Types of Investments?
How To Diversify Investments: A Beginner’s Guide for 2024
By using this website you agree to our Terms of Use and Privacy Policy. To begin investing on Stash, you must be approved from an account verification perspective and open a brokerage account.
