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Why It's Risky to Invest in Pot Stocks


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NEW YORK (CNNMoney) –Many investors have the munchies for the exploding marijuana industry. But if you're passing on pot stocks, you're not just being paranoid. They are risky investments.

Publicly traded marijuana companies are penny stocks, meaning they trade on the thinly-regulated and highly speculative over-the-counter markets. Penny stocks, regardless of the industry, tend to be far more turbulent than large cap stocks like Apple and Facebook that live on the major stock exchanges.

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