Should You Avoid Over-The-Counter Cannabis Stocks?

It’s an exciting time for cannabis stocks. The market has seen explosive growth, and it probably won’t hit a plateau for at least several more years. However, many marijuana stocks are being sold OTC, which means that they’re not listed with the New York Stock Exchange or any other formal exchange. Should you avoid these stocks? How can you make sure that you’re making the right investment? Here’s what you need to know about investing in cannabis stocks OTC and whether it’s the right choice for you. 

Why Cannabis Stocks Go OTC 

While cannabis has become a lot more mainstream lately, cannabis entrepreneurs still face some issues. First, the mixed legality of cannabis in the US complicates the market. Cannabis is fully legal in a handful of states, but many have only legalized medical marijuana. A few others still outlaw all forms of weed. As a result, many banks and other mainstream sources avoid these businesses altogether. With fewer mainstream funding options, cannabis companies often sell over-the-counter stocks

Should You Avoid OTC Cannabis Stocks? 

Should you avoid over-the-counter marijuana stocks? It depends on a few factors. Just because a stock is OTC doesn’t necessarily mean that it’s a bad stock. It does, however, mean that you should be careful. Investment beginners should probably stick to the mainstream stock market. More experienced investors can venture over-the-counter. In any case, always do your research before making a commitment. All stocks come with risks. When you do your research first, you can make informed decisions. 

What Else Should You Keep In Mind? 

When you research cannabis stocks, remember that you’re not limited to companies that just grow recreational weed. Medical marijuana is also a great investment option. You should also look into bottling companies, marketing, and other supporting cannabis companies. 

Finally, don’t think that you have to take a major leap of faith. Sure, it’s an exciting time for cannabis investors, but that doesn’t mean you have to go all in. You can absolutely start small. For example, if cannabis stocks take up 1-2% of your portfolio, you’ve found a great place to start. 

Cannabis Stocks 

Thinking of investing in cannabis stocks? Then you’ve found a great place to start your research. We cover all the latest information on investments, the cannabis market, and more. Keep checking back here for more information, and you can make the most of your investment opportunities.

Why Cannabis Stocks Go OTC 

While cannabis has become a lot more mainstream lately, cannabis entrepreneurs still face some issues. First, the mixed legality of cannabis in the US complicates the market. Cannabis is fully legal in a handful of states, but many have only legalized medical marijuana. A few others still outlaw all forms of weed. As a result, many banks and other mainstream sources avoid these businesses altogether. With fewer mainstream funding options, cannabis companies often sell over-the-counter stocks. 

Should You Avoid OTC Cannabis Stocks? 

Should you avoid over-the-counter marijuana stocks? It depends on a few factors. Just because a stock is OTC doesn’t necessarily mean that it’s a bad stock. It does, however, mean that you should be careful. Investment beginners should probably stick to the mainstream stock market. More experienced investors can venture over the counter. In any case, always do your research before making a commitment. All stocks come with risks. When you do your research first, you can make informed decisions. 

What Else Should You Keep In Mind? 

When you research cannabis stocks, remember that you’re not limited to companies that just grow recreational weed. Medical marijuana is also a great investment option. You should also look into bottling companies, marketing, and other supporting cannabis companies. 

Finally, don’t think that you have to take a major leap of faith. Sure, it’s an exciting time for cannabis investors, but that doesn’t mean you have to go all in. You can absolutely start small. For example, if cannabis stock takes up 1-2% of your portfolio, you’ve found a great place to start. 

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