How to Invest in Marijuana Part 2

Legal Issues: What You Need to Know

There are a number of legal issues that you’ll want to be aware of before you invest a cent of your portfolio:

The SEC (Securites and Exchange Commission) recently warned investors that it has been: Receiving more and more complaints about the legality (or lack thereof) of some marijuana investments. With some companies seeing their stock shares temporarily suspended, this is definitely something to keep in mind.

Banking issues. In the early days of marijuana legalization, many companies had trouble saving their money because of reluctant banks.

Though the U.S. government has allowed banks to work with legitimate marijuana businesses, this too could be considered an important issue to keep an eye on, especially in the infancy of marijuana legalization in new states, should other states join Washington and Colorado.

It’s also important to keep an eye on state laws, as the marijuana issue really highlights the varying laws of each state and how it affects investments.

The Individual Segments in the Marijuana Investment Field, it will also serve to understand the different subcategories of marijuana businesses:

Medical marijuana: The legalization of recreational marijuana does not put an end to the demand for medical marijuana. In states where medical marijuana is permissible, other investments may be considered.

Recreational marijuana: The new companies and licenses issued in Washington and Colorado have made the news over the past year, and with good reason. To many, the recreational marijuana industry may represent the most attractive growth potential.

Edibles: This may be considered part of the “recreational” marijuana segment, but it’s still worth mentioning, especially as recreational marijuana grows in stature with its legalization in various states.

Systems and structures: Growing marijuana, when legal, could be considered an industry worthy of potential investment. Without the right systems in place, it will be difficult for the overall segment to grow, and the savvy investor recognizes this fact.

Continue to How to Invest in Marijuana Stock Market Trends: Part 3>>