Marijuana Stocks FAQs | Cannabis Growth Fund | 800.446.1179

Cannabis Growth Fund offers its insight into the cannabis industry with a selection of marijuana stocks FAQs. Learn more about our mutual fund and how you can invest.

Marijuana Stocks FAQs

It is highly apparent that there is a necessity for marijuana stocks FAQs. There are plenty of questions that curious investors and newcomers to finance come to us with at Cannabis Growth Fund. We are happy to share our insights with those who need them.

A Guide to Pot Stocks

Many people who consider investing in marijuana stocks are already involved in the stock market. A study by Investopedia found that those researching investments in the cannabis industry were also likely to be looking at exchange-traded funds and virtual currency. Interestingly, the demographics also skewed significantly older than expected: 45-64 year-olds are between 25-30% more likely to be interested in content concerning marijuana investment than average. Men are also more likely to be interested in marijuana investment than women. This is potentially due to the riskier nature of the marijuana market than the broader stock market: men are more likely to take risks with their money than women.

Frequently Asked Questions About the Marijuana Stock Market

These are some of the questions we most commonly hear. If you’re getting questions from your friends and family about investing in cannabis, you may be able to find an answer for them here.

Is it legal to invest in marijuana stocks in the US?

Yes, it is currently legal to buy marijuana stocks in the United States. You can invest your money in companies that sell marijuana, or companies that grow or harvest it. You can even invest in companies that provide the tools for the industry to produce: agricultural equipment, soil, or lighting, for example.

Where can I buy marijuana stocks?

While most US cannabis stocks are only to be found on OTC (over-the-counter) markets, the New York Stock Exchange and Nasdaq are allowing companies such as Aurora Cannabis (ACB) and Canopy Growth (WEED) to be traded because they are not violating an U.S. federal laws.

How much is the industry worth?

This is a difficult one to answer, since the industry is still in a period of rapid growth. It’s estimated that legal cannabis sales in North America were approximately $17 billion in 2019. By 2024, assuming American federal legalization to match the situation in Canada, marijuana could be worth $44.8 billion. It’s expected, though, that Canada will comprise less than 10% of that total.

Cannabis Stock Trades FAQs

If you have more in-depth questions about the cannabis industry and investments, you may find the answers here.

What is the market’s confidence in the leadership of the sector?

A good question: executives have been pouring into the sector from other industries. Specifically, pharmaceutical and consumer packaged goods have seen migration. With more trusted faces at the helm of new (or relatively new) companies, investors are more likely to put their money in.

How much cannabis is being grown?

Major Canadian producers announce quarterly their pot growth and sales through their financial statements. However, there is some opacity surrounding the cost of the product and how much it is being sold for. Investors are pushing for companies to share more information about their sales. Some companies use cost-per-gram, but this is a flawed metric. Comparing companies with imprecise metrics like this can be difficult.

What are these marijuana cryptocurrencies I’ve heard about?

Marijuana is not yet federally legal, so there are some investors who trade in cryptocurrencies designed specifically for legal marijuana trading. Some include CannabisCoin, HempCoin, CannaCoin, and PotCoin. They operate similarly to Bitcoin.

Can I invest in Canadian marijuana stocks?

Yes. Many major trading platforms permit international trading.

Are there other territories to invest in marijuana?

Yes. Germany is seeing activity since medical marijuana was legalized there in 2017. While the population there is more resistant to the idea of full decriminalization of cannabis than in the United States (only one in three Germans support weed legalization, compared to two in three Americans), there are many seeking to invest in growing cannabis within German borders, or at least closer than Canada.

What is the relevance of IRS Code 280E?

IRS Code 280E prevents companies producing controlled substances from claiming deductions or credits on their taxable income. Initially enacted to punish cocaine traffickers, it nevertheless harms legal cannabis companies because cannabis is still listed as a Schedule I controlled substance. There are workarounds, but they are byzantine and vary from state to state. While bipartisan legislation to free cannabis from this tax trap, if not reschedule cannabis, has passed the House of Representatives, it is unlikely to become law unless the makeup of the Senate becomes more marijuana-friendly.

Where is a good place to start investing in legal marijuana?

If you are unsure about personal finance management, and would prefer to trust your investments to professionals, you may want to look into investing in a fund. There are different kinds of fund that may appeal to you. Mutual funds are very popular with Americans. Nearly half of all US households have money in at least one mutual fund, either through employer-sponsored retirement plans or independently.

Cannabis Growth Fund is an open-end mutual fund that invests primarily in exchange-listed equity securities of cannabis companies, or companies that provide ancillary products or services to complement recreational or medical cannabis.

If you want to learn how to invest in our fund, you can pursue one of several ways. We are available through multiple brokerage firms, including Ameritrade and Interactive Brokers. You can open an account by mail. You can also open a Cannabis Growth Fund account online. Call us on (800) 446-1179 if you have questions not covered above.

OF SPECIAL NOTE

Statements, estimates and forecasts are subject to significant legal, business, economic, and competitive uncertainties, including competition, limited access to bank services, litigation, enforcement actions, and the receipt of government authorizations. This includes differences in, among other things, laws, regulations and guidelines relating to the manufacture, transportation, and storage of cannabis, and the conduct of operations, which vary among the U.S. federal government, various states, and foreign jurisdictions. There can no assurance that such estimates and/or forecasts will be realized, and these are not indicative of future investment performance. Historical data is not indicative of future performance.