Weed stocks have incredibly high market valuations despite illegality
Weed is thriving in the stock market, but companies will need to hash out some legal issues if they want to reap the benefits in the U.S.
The stock market has given several marijuana companies valuations as high as $20 billion, but these stocks are listed with the caveat that they are unable to operate in the U.S. due to federal restrictions, reports Markets Insider. Under current laws in the U.S., the production, possession, and consumption of marijuana remains a criminal act.
Despite these restrictions, weed stocks are "astronomically valued" when compared to the tech, alcohol, and tobacco sectors, per Markets Insider.
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Support for the legalization of marijuana is at an all-time high in the U.S., and 11 states have made the drug fully legal. But despite some states' support, weed companies cannot be listed in the U.S. market without violating federal law.
