All New York Cities

Click here for an alphabetical listing

Wall Street Weed Warning

In an interesting twist, it appears that some may be taking advantage of the “legalize marijuana” hype to offer less than honest stocks on Wall Street. According to the LA Times, investment pitches for marijuana-related stocks could be what are known as “pump and dumps.”

A pump-and-dump stock is one that has its price artificially inflated through hype instead of actual value. As the price rises, the early entrants (who bought the stock cheap and contributed to the hype) sell off – the ‘dump’ part of the operation. The Times cites one stock (unnamed) that received the hype treatment, even though the company hadn’t even offered a business plan and was losing money.

The appeal, for some investors, is to get in on the ground floor, and marijuana related businesses are a new and exciting category. While the potential for growth and profit is huge – provided money now going to the illegal market goes to legitimate companies – simply slapping the description of “ganja-preneur” on a company doesn’t mean that business will share in the coming boom times.

The warnings about potential fraud are coming from FINRA, the financial industry regulatory authority, so there’s certainly credibility there. However, no stocks were named as possibly fraudulent and the warning was focused on investors doing due diligence before purchasing in this new sector.

Added warnings were about company officials who had criminal pasts. Unlike other businesses, being an ex-con might work for someone in the marijuana industry, since time in jail for a drug crime might indicate experience and some expertise. Meanwhile, legitimate medical marijuana operations are turning to stocks and bonds because banks seem unwilling to lend them start-up capital – for good reason, in many states, the legal situation is in flux, with federal and state law in conflict. An industry operating in a legal gray zone comes with a substantial risk of arrest and forfeiture, leaving investors with no recourse.


The contents of the web site (the "Site") are for informational purposes only. The Information is not intended as a substitute for professional medical advice, diagnosis, tests or treatment, and does not create a physician-patient relationship. This Site and Deep Dive Media ("the Company") are not responsible for sending you to, referring you to or making recommendations about a doctor, a professional practice or health insurance company. NO LICENSED PHYSICIAN-PATIENT RELATIONSHIP IS CREATED BY USING INFORMATION PROVIDED BY OR THROUGH THE USE OF THIS SITE INCLUDING, BUT NOT LIMITED TO, TREATMENT CENTER REFERRAL FUNCTIONS OR LINKS TO OTHER SITES. The Company makes no guarantees, representations or warranties, whether expressed or implied, with respect to professional qualifications, expertise, quality of work or other information herein. Further the Company does not in any way endorse the individuals described herein. In no event shall the Company be liable to you or anyone else for any decision made or action taken by you in reliance on such information. You are STRONGLY ADVISED to perform your own due diligence prior to selecting a health care professional with activities, such as making confirming telephone calls to the appropriate licensing authorities to verify listed credentials and education. In addition you can further verify information about a physician or medical provider by confirming with the doctor's office, your current physician, the medical association relative to the doctor's specialty and your state medical board. See our Legal Statement for the complete terms and conditions governing your use of the Site.


Why Did You Visit This Site?:

Call 1-855-236-4673 anytime to speak with an addiction specialist. Insurance Accepted.