You have to wonder if investing in cannabis is legal because on a federal level, things still seem to be up in the air. With more companies going public every day, the still illegal industry is growing rapidly. Score one for the stoners: The pot industry is poised to be gigantic as more states embrace legalization. And, if you want to get in on the ground floor, several advocates say now is the right time to bet big on marijuana.
If you want to forgo the licensing process and invest in an existing company—which is safer, make sure that the company follows state regulations. States that have legalized for adult use rather than just medical tend to have more existing rules, leaving less ambiguity and less legal risk.
Read more: How to legally invest in pot companies
EXCERPT FROM MICHELLE CASTILLO/CNBC