Why Marijuana Stocks Might Go Down The Drain

imageTwenty states allow the use of medical marijuana. It seems clear that the trend will continue and that marijuana will become a multibillion-dollar industry. Dozens of cannabis companies have sprung up as a result of a wave of legalization and decriminalization. Investors can now bet on them through so-called pot stocks and do they ever.

When laws legalizing marijuana in Colorado and Washington state went into effect, shares in many of those companies soared. But it wasn’t long before they came crashing down. The harsh reality is that if you buy shares in pot stocks today, your investment stands a good chance of fizzling out.

Part of the reason has to do with how marijuana stocks, also known as penny stocks, trade. Medical Marijuana ( MJNA ), Cannabis Science ( CBIS ), and GrowLife (PHOT), to name a few of the largest, trade on the over-the-counter market.

To read more visit http://finance.yahoo.com/news/why-marijuana-stocks-might-smoke-100000969.html

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