Because cannabis is federally illegal in the U.S., many major exchanges like the NYSE and NASDAQ cannot list "plant-touching" U.S. companies.
You can gain exposure to the medical marijuana market through three primary vehicles:
: Investing in "pick-and-shovel" companies that support the industry but do not touch the plant directly, such as Innovative Industrial Properties (IIPR) (real estate) or Quest Diagnostics (DGX) (drug testing). 2. Identify the Types of Cannabis Companies how to buy stock in medical marijuana
: Funds like AdvisorShares Pure US Cannabis (MSOS) or AdvisorShares Pure Cannabis (YOLO) hold a basket of many cannabis companies, providing instant diversification.
: Buying shares in specific companies. This offers high potential returns but carries significant company-specific risk. Because cannabis is federally illegal in the U
: U.S.-based companies that grow and sell cannabis in multiple legal states. Examples include Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF) .
When you are ready to buy, follow these steps to manage volatility: How to Buy Marijuana Stocks: A Beginner's Guide This offers high potential returns but carries significant
: Most U.S. MSOs trade on Over-The-Counter (OTC) markets. You need a broker that permits OTC trading, such as Fidelity , Charles Schwab , or Interactive Brokers .