http://www.finra.org/investors/alerts/marijuana-stock-scams Home For Investors Investor Alerts Investor Alerts Marijuana Stock Scams Update: In early January 2014, new laws regarding the legalization of marijuana for medical and recreational purposes went into effect in a number of states. At the same time, media coverage of the issue increased, as did investor interest in shares of marijuana-related companies. In some cases, volumes for the stock of otherwise thinly traded, marijuana-related companies increased dramatically-and prices became quite volatile. In May 2014, the SEC issued an alert and accompanying trading suspensions for numerous companies that claim their operations relate to the marijuana industry. We are reissuing this alert to warn investors not only about the potential for fraud in this arena, but also to reiterate the risks of investing in thinly traded companies about which little is known. Regardless of industry sector, any so-called "hot" stock can burn your portfolio. Rather than getting swept away, take time before you invest to learn more about the company, its products or services and the people running it. And be sure you carefully assess the company"s prospects for success. With medical marijuana legal in almost 20 states, and recreational use of the drug recently legalized in two states, the cannabis business has been getting a lot of attention-including the attention of scammers. FINRA is issuing this alert to warn investors about potential scams associated with marijuana-related stocks.