Why Tilray and Other Pot Stocks Jumped Today

On Thursday morning, marijuana stocks were continuing on an upward surge that began Wednesday after potentially game-changing banking legislation in the U.S. took a big step forward in its journey through Congress.

Shares of Canadian pot companies Tilray (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and OrganiGram Holdings (NASDAQ: OGI) all jumped by at least 5% early Thursday. As of 11:30 a.m. EDT, their gains were as follows:

Marijuana companies don't have an easy time doing business in the United States, even in states that have legalized cannabis. That's because federal restrictions prevent banks from doing business with cannabis companies. That forces those in the business to transact solely in cash. But the SAFE Banking Act is reform legislation that would prohibit federal banking regulators from penalizing banking institutions from doing business with legitimate cannabis-related companies. And that legislation took a notable step forward in Congress this week.

Source Fool.com