Reason For Failure of Marijuana Stock In Canada
Canada legalized medical marijuana in the way back 2001, that means the industry has evolved dramatically, the house of the common of Canada passed the act(Bill c—45) allowing the legal use of marijuana for recreational purpose.
1. The dominance of retail investors, especially those that operate in the U.S., where marijuana remains federally illegal. That is Canadian retail investors drive the stock price is a drastically work which is control by ignorance investors that doesn’t understand what they are investing in.
2. Cheaper goods from the traditional market so many people opt to an optional market thus regular stock which is less expensive because the demand for capital has been dominated by investors who are stock pumpers thus creating a bad image on the market
3. The government has imposed high taxation also black-market this has brought the value of cannabis down cause of high tax this has dramatically affected and discourages the licensed market the value of the cannabis stock as has gone low for many investors can’t easily invest on the product.
4. Overproduction and oversupply, this has brought down the market of the stock because the product has become dependent on many people and high demand for the user; thus, there is no control over production and supply, thus making it more on the market lowering its quality and value.
5. Rehabilitation and creating awareness on the use of this product thus discouraging people from using it and educating people the effects of this product has dramatically brought about its failures cause many people have taken a step ahead and stopping the use thus discouraging its market and production lowering its demand on the people and its use.
6. Risk of brokers or people that are over-the-counter stock or penny stocks are headed for bankruptcy thus they broke the production highly over-leveraged thus making the market lower and sometimes the product sold by brokers are costly thus giving disadvantages on the market and the product this gives tremendous advantages on the black market and its work.
7. The imposition of regulation blocking advertising of and packaging have also made it challenging to establish brands in the space this has also brought on beneficiaries or the users from differing different products and brands in the market has created difficultly in identifying the excellent product and selling of the best brand on the market.
8. The imposition of regulation blocking advertising of and packaging have also made it challenging to establish brands in the space this has also brought on beneficiaries or the users from differing different products and brands in the market has created difficultly in identifying the excellent product and selling of the best brand on the market.
9. There are no enough retail stores thus bricks, and motor are in high demand thus making people go after low-quality products about 29% of all cannabis consumer in the country obtain there weed from the legal sources therefore no consumer want high quality but low-quality cannabis.
