Because cannabis is federally illegal in the U.S., many major exchanges like the NYSE and NASDAQ cannot list "plant-touching" U.S. companies.

The industry is generally split into three categories based on their operational focus:

When you are ready to buy, follow these steps to manage volatility: How to Buy Marijuana Stocks: A Beginner's Guide

: Most U.S. MSOs trade on Over-The-Counter (OTC) markets. You need a broker that permits OTC trading, such as Fidelity , Charles Schwab , or Interactive Brokers .

You can gain exposure to the medical marijuana market through three primary vehicles:

: Funds like AdvisorShares Pure US Cannabis (MSOS) or AdvisorShares Pure Cannabis (YOLO) hold a basket of many cannabis companies, providing instant diversification.