The global medical marijuana market is projected to grow at an annualized rate of almost 18% through 2028, according to Data Bridge Market Research. Much of this growth will likely be in the U.S., where 37 states have already legalized medical cannabis. Medical cannabis products sold in the U.S. include dried flower, vaping concentrates, cannabis-infused edibles, and topical products such as lotion.

Investors who opt to buy individual medical marijuana stocks can choose among Canadian or U.S. companies. Canadian medical cannabis companies can legally list on U.S. stock exchanges, while U.S. medical cannabis companies operating legally at the state level can legally list on Canadian stock exchanges and over the counter (OTC).

How to choose the best medical marijuana stocks.

Investing in the medical marijuana sector is relatively risky as long as cannabis remains federally illegal in the U.S. The plant's federal status also constrains the growth of the sector, and investors have no guarantee that the federal government will continue to allow states to treat cannabis as legal.

But the long-term prospects of the medical marijuana industry are excellent. More countries and U.S. states are recognizing the potential benefits of medical cannabis and legalizing the use and sale of medical cannabis products. More individuals and the broader medical community are also recognizing the plant's medicinal benefits, driving demand higher for medical marijuana.

Variety of investment options.

The medical cannabis market is wide, from its production, through secondary industries of tea, vapors, pills and food that focus on its active ingredient, THC, to its direct marketing to the consumer.