Did you know that over 50 percent of families in America own publicly traded stocks? In the 1980s, that figure was around 30 percent.
It’s clear that stock trading is an increasingly popular way to increase personal wealth.
If you’re looking to diversify your portfolio, you might be looking into investment options outside of oil and gas, tech, and other trending sectors. Gold, cannabis, and fine art are among some of the more left-of-field investment options.
Perhaps, too, you’ve heard the word that kratom stocks are a possible option? Read on to find out if there are any traded kratom companies to invest in.
First of All, Is Kratom Legal?
This is a tricky question to answer because the regulations vary wildly from country to country and across legal jurisdictions.
Some countries ban kratom outright—Canada, Switzerland, Thailand, the UK, Finland, Russia, and Korea among them. But in the USA, the substance is still legal on a federal level. However, a handful of American states ban its use and sale.
Despite a push to ban kratom on an international level, a recent review by the WHO’s Executive Committee on Drug Dependence (ECDD) voted no to a global ban. Instead, they opted to continue monitoring its use, side effects, and potential benefits as a low-risk pain killer.
Kratom Companies Operate in a Grey Area
What all this means is that today’s kratom companies operate in what is essentially a legal grey area.
In America, people can still purchase kratom products online. Indeed, some estimates state that as many as 2 million citizens use the substance in an effort to treat everything from chronic pain to depression.
If someone wants to invest in kratom businesses, the company needs to be publicly traded. In other words, they need to list on the stock market. To do this, they need to agree to specific rules, including transparency around their board, accounting processes, and revenue.
Of course, kratom’s legal status makes it difficult for companies selling kratom wholesale products to do this. They don’t want to agree to the transparency needed for fear of being penalized.
Future Kratom Investment Options
So will this situation change in the future, and if yes, when? Considering how rapidly the American cannabis industry has transformed itself in the past decade due to legalization, it’s certainly possible.
However, several regulations need to be implemented to make it safe for people to invest in kratom stock. These include regulating kratom as a health supplement, requiring third-party testing, affording protection to consumers and businesses, and giving kratom companies access to banking options.
Will this happen? Let’s just say it’s undoubtedly a space to watch.
Kratom Stocks: Are They Right for Your Portfolio?
Since a kratom business exists in a legal grey area, it’s hard for companies to trade publicly. That’s because they don’t want to engage in the transparency required by stock market regulations. And without an IPO, people can’t invest in them.
This makes it challenging for investors to add kratom stocks to their portfolios. Penny stocks are a possible option, or, in the meantime, people can consider investing in American cannabis companies instead.
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