Cannabis Investing Glossary
Clear, institutional-grade definitions for every term, calculation, and regulatory concept that matters for tracking publicly traded cannabis equities. Updated alongside CIN's market intelligence platform. · 15 terms
Federal tax code provision that bars cannabis operators from deducting ordinary business expenses, creating effective tax rates often above 70%.
The DEA's formal process to move cannabis from Schedule I to Schedule III under the Controlled Substances Act — the largest near-term catalyst for the sector.
Federal legislation that would let banks and payment processors serve state-legal cannabis businesses without federal prosecution risk.
The 1970 federal law that classifies cannabis as Schedule I — the root regulatory obstacle for the U.S. industry.
A vertically integrated cannabis company licensed to cultivate, manufacture, and retail across multiple U.S. state markets.
A federally licensed Canadian cannabis cultivator and seller — the Canadian counterpart to the U.S. MSO structure.
Moving a cannabis stock from OTC markets to a major exchange (NYSE/NASDAQ) — currently blocked for U.S. plant-touching operators by federal illegality.
Industry shorthand for the largest U.S. MSOs by revenue and footprint — typically Curaleaf, Cresco, Trulieve, Green Thumb, Verano, and TerrAscend.
The only category of expenses U.S. cannabis operators can deduct against revenue under IRC 280E — making COGS classification a central tax-planning concern.
Operating cash flow minus capital expenditures — the cleanest measure of cannabis operator financial health given 280E tax drag and capital intensity.
Earnings before interest, tax, depreciation, and amortization — heavily adjusted in cannabis reporting and frequently misleading without 280E context.
Real Estate Investment Trust specializing in sale-leaseback financing for state-licensed cannabis operators — the dominant non-equity capital channel.
The above-market interest rates and dilution premiums cannabis operators pay due to limited banking access and elevated execution risk.