Marijuana stock in cannabis-related businesses has become a viable investment for many investors. Global marijuana markets are, pardon the pun, growing like a weed. Worldwide spending on cannabis reached $9.5 billion in 2017, according to ArcView Market Research and BDS Analytics. The total is projected to increase to $32 billion by 2022, a compound annual growth rate (CAGR) of 27.5%.
With this type of impressive growth, it’s no wonder that many investors are interested in investing in publicly traded cannabis stocks. Marijuana stocks have attracted a lot of attention from investors over the past couple of years. And for good reason. With countries legalizing medical and/or recreational marijuana, marijuana has become one hot commodity.
However, it has also become a way for fraudulent companies to make money by encouraging investments in subpar marijuana stock.
Penny stocks are an example of a long shot in the marijuana stock market. Blue chip marijuana stocks are a more stable choice. Companies that have an affiliation with the marijuana industry but have also created stability in other avenues are often ideal stock choices.
Gardening supply companies and pharmaceutical companies are also considered marijuana stock options in some cases.
The New York Stock Exchange created its first-ever marijuana stock fund on December 26, 2017. Most marijuana stock is composed of cultivators, weed-related biopharmaceutical firms, and agricultural companies such as pesticide and fertilizer manufacturers.
Marijuana stock has been widely received in Canada, where the first-ever marijuana ETF started in April 2017. Since its debut, it has acquired $216 million in assets and experienced a growth rate of 44 per cent in Canada.
This definition was written in the context of Cannabis.
Credits: Maximum Yield