If you are considering investing in a cannabis company, you should first take some steps toward researching the investmentInvestment An item of value you buy to get income or to grow in value.+ read full definition opportunity and considering how the investment will help meet your financial goals:
- Review disclosure documents. Companies offering investors the opportunity to investInvest To use money for the purpose of making more money by making an investment. Often involves risk.+ read full definition are required to provide specific disclosure documents, such as a prospectusProspectus A legal document that sets out the full, true and plain facts you need to know about a security. Contains information about the company or mutual fund selling the security, its management, products or services, plans and business risks.+ read full definition, listing statement or an offering memorandumOffering memorandum A document describing the business of an issuer. This document is designed to help potential buyers make an investment decision when they are considering exempt-market securities.+ read full definition, which contains information about the business, its management, operations and business risks, including the nature of its operations in specific countries and states, as well as how it complies with laws in each jurisdiction in which it conducts business.
- Read official materials. Annual reports, management’s discussion and analysis, news releases and other official company materials can provide information about whether the company is making or losing money, information about its financial statementsFinancial statements Reports that sum up a companys financial data and tell you how it is doing. The four basic statements are: the statement of financial position (balance sheet, statement of profit or loss (income statement), cash flow statement, and statement of changes in equity.+ read full definition and comments from management on how the company has performed, as well as any industry trends or events that may have affected the company’s operations.
- Speak with an advisor. Advisors can answer questions about particular investment products and assist you with selecting investments that can help you achieve your financial goals. Find out what to expect from an advisor.
- Learn more. Explore more articles, tools and resources on GetSmarterAboutMoney.ca to learn more about investing, including the risk-return relationship, understanding the exempt market and what it means to diversify your portfolio.
- Contact the Ontario Securities CommissionOntario Securities Commission An independent Crown corporation that is responsible for regulating the capital markets in Ontario. Its mandate is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair and efficient capital markets and confidence in capital markets, and to contribute to the stability of the financial system and the reduction of systemic…+ read full definition if you have further questions or concerns. If you have a question about investing, you can contact the Ontario Securities Commission or ask us a question.
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