JPMorgan: No Trading Certain U.S. Cannabis Stocks
Cannabis stocks are a popular and easy way to invest in the emerging cannabis industry. As any seasoned investor will point out, cannabis stocks are young compared to stock offerings from more established industries, and the landscape in which those companies operate is always evolving. That creates risk.
To make matters more complicated in the United States, not all cannabis stocks are listed on major stock exchanges. Cannabis, of course, remains illegal at the federal level in the U.S. and that creates even greater risks for certain cannabis companies.
All of that risk, combined with the fallout from the collapse of a private fund, has led JPMorgan to cease all trading of certain U.S.-based cannabis stocks. Per excerpts from an article first published by Reuters:
JPMorgan Chase & Co (JPM.N) has told prime brokerage clients it will no longer let them buy certain U.S. cannabis-related securities beginning Nov. 8, according to a letter seen by Reuters.