Before investing, it's a good idea to understand the basics. For cannabis stocks, that means learning about the cannabis plant itself. There are two primary chemicals in the cannabis plant, known as cannabinoids. The first is Delta-9 tetrahydrocannabinol (THC). This is the primary psychoactive ingredient in marijuana and is responsible for the “high” people feel from consuming cannabis.

The other is cannabidiol (CBD) - a natural chemical compound extracted from the Cannabis sativa plant. This is the active ingredient in cannabis that has many potential therapeutic benefits, including anti-inflammatory, analgesic, anti-anxiety and seizure-suppressant properties. However, CBD does not cause a “high” in the way that THC does.

Why invest in the cannabis industry?

Today, cannabis-related business constitutes one of the fastest blossoming global industries thanks to a budding global legalisation movement as well as changes to public perceptions of the industry. Together these changes are set to create a $80bn dollar industry by 2030. Businesses have grown to service every part of the growing industry, from cultivating and growing cannabis, to providing services to the growers, to distribution and retail marketing, and even to biotech development of cannabinoid-based prescription drugs.
In Europe, there are now 28 countries with some form of medical cannabis legislation, with the UK being the largest producer and exporter of medical-grade cannabis in the world. In 2018, the global medical cannabis market was estimated to be $12.58bn. Experts predict that the market will grow at over 26% per year to reach a value of $36.90bn by 2024.

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