Though there are literally thousands of stocks for investors to choose from, it's a group of a few dozen in the budding marijuana industry that are garnering a lot of buzz. And it's not hard to see why, either. If investors had the foresight, fortitude, and luck to invest in some of the biggest cannabis stocks at the beginning of 2016, they'd be looking at quadruple-digit percentage gains today.

But there's more to investing in the marijuana industry than throwing a dart and hoping to get lucky. Here are 13 things you should know if you plan to invest in cannabis stocks.

As more Americans grow comfortable embracing the use of cannabis-related products, one company is hoping to bring a level of luxury to the marijuana culture.

That’s why celebrity jeweler Alex Todd founded Saucey Farms and Extracts. Launched in April 2019, the luxury cannabis brand sells premium products and organically grown strains of weed in California and Oregon, two states where recreational marijuana-use is legal. For Todd, it’s all about selling quality products.

Nasdaq-listed Israel-based cannabis company Therapix Biosciences Ltd. has signed a letter of intent for a proposed merger with Edmonton, Canada-based cannabis company Destiny Biosciences Global Corp., the former The merged company will focus on Therapix's technology and assets pertaining to clinical-stage pharmaceutical applications of cannabis, and will include Destiny's genomics-based cannabis breeding techniques and development capabilities, according to the company’s statement.

The companies expect a definitive agreement of the merger to be signed during the third quarter of 2019, subject to certain closing conditions. Upon closing, current Therapix equity holders are expected to own approximately 32% of the combined company, the company said.

Cannabis has been legal to use recreationally in Canada for a while now, but some may still not be aware of the specific areas where its use remains prohibited.

As there can be some hefty fines and charges for those caught breaking the law, it’s good to be aware of where you can and can’t enjoy cannabis.

Since its legalization, residents have typically been allowed to consume the drug in private residences including porches and backyards, most outdoor public places including sidewalks and parks, designated smoking guest rooms in hotels, motels and inns, and residential vehicles and boats that meet specific criteria (they have permanent sleeping accommodations and cooking facilities, and are parked or anchored).

So, where can you not use cannabis?

Pot stocks have taken an absolute shellacking in recent months. Just look at the top five Canadian cannabis producers. Shares ofCanopy Growth (NYSE: CGC) , Aurora Cannabis (NYSE: ACB) , Cronos Group (NASDAQ: CRON), Tilray (NASDAQ: TLRY) , and Aphria (NYSE: APHA) are all down more than 30% from their highs earlier in the year.

With the TSX Index just few points off its all-times highs, the economy continuing to chug along, and central bankers considering the prospects of another interest rate cut, there’s certainly plenty of reason for optimism among investors.

Yet there’s always going to be turnover in the markets.

With that in mind, here are three stocks that are at the top of my list to sell in August.

Bausch Health Companies (TSX:BHC)(NYSE:BHC) making a list of this sort may come as a surprise to some readers.

BHC stock has after all gone on to gain more than 260% since it “bottomed out” early in 2017.

On bad days, Samantha Gold lies writhing on her couch, waiting for her agonizing back pain to pass.

With cannabis topical creams set for legalization across Canada this fall, Gold was hoping to try using them to help manage her pain. 

Those hopes were dashed, however, when the Quebec government announced it would be banning the sale of topicals in the province.

That same regulation will also ban the sale of cannabis edibles. 

Lionel Carmant, the CAQ's junior health minister, said the government is implementing the ban to prevent children from accidentally consuming cannabis.

As for the creams, he said they have no place in a recreational cannabis shop.

HEXO Corp. (NYSEMKT:HEXO) has taken investors on a roller-coaster ride in 2019. After soaring more than 140% by late April, the stock steadily sank in the subsequent weeks and months. HEXO is currently down 45% from its highs set earlier this year.

But smart investors don't obsess over short-term volatility. Instead, they focus on the long-term prospects for the stocks that they buy. This raises a good question, though: What exactly are the long-term prospects for HEXO? Where will the company be in five years and beyond?

There are no easy answers to these questions since we can't accurately predict the future. However, here's my take on what the future might hold for HEXO.

On paper, the choice between Aphria (NYSE:APHA) and Constellation Brands (NYSE:STZ)appears to be an easy one. Constellation Brands is bigger, more profitable, and even pays a dividend. But those current statistics that work to Constellation's advantage don't reveal growth prospects. It's possible that Aphria could beat Constellation on the growth front.

Which stock is the better pick for long-term investors? Here's what you need to know about how Aphria and Constellation Brands compare.

Researchers at the University of Guelph in Ontario have uncovered how cannabis creates pain-relieving molecules that are 30 times more effective than Aspirin at reducing inflammation.

The researchers used a combination of biochemistry and genomics to unearth the secrets behind marijuana’s success as a medicine. They said their discovery unlocks the potential to create a natural pain treatment method that offers potent relief and does not come with the risk of addiction associated with traditional painkillers.