This study examines the behavior of cannabis stock on the Toronto Stock Exchange and why investors are interested in cannabis stock. The theory of heterogeneous beliefs, bounded rationality theory and the theory of addiction grounded the study. We employed basic descriptive statistics and the Kruskal-Wallis test including an in-depth interview of investors using convenience sampling methods. The study findings showed that cannabis stocks exhibit a higher-level of risk volatility when compared to speculative and growth stocks on the Toronto Stock Exchange within the period under investigation. The descriptive statistics result suggest potential diversification benefits between cannabis stocks and growth stocks as both stocks classifications are likely to respond to macroeconomic shocks differently. Other findings show that cannabis stocks share similar characteristics with other speculative stocks but also possess unique features. Finally, investors are interested in cannabis stocks because of its potential for future strong earnings on the platform of the theory of addiction as discussed in the study. Funding: This study received no specific financial support. Competing Interests: The authors declare that they have no competing interests. the non-intoxicating compound responsible for calming people down) (Globe & Mail, 2019). Scientists overtime based on their understanding of how the human brain responds to Cannabis have developed medications which are derivatives of cannabis compounds to alleviate human sufferings by mitigating the effects of certain ailments. For instance medical cannabis have been developed for the treatment of neuropathic pain, spasticity in patients with multiple sclerosis, analgesic treatment of adult with cancer, treatment of nausea, appetite stimulant for patient with HIV, regaining memory loss, treatment of traumatic brain injury etc. (Medicalmarijuana.ca, 2019). On the basis of the successes recorded in the pharmaceutical industry coupled with a thriving illegal use of recreational cannabis in the black market, the government initiated and approved the bill allowing recreational cannabis. On October 2018, Canada became the first Country amongst the G7 nations to legalize the sale, and the use of recreational cannabis (Statistics Canada (2019)). Currently, approximately 4.9 million Canadians use cannabis for recreational purposes, with the potential to grow much more now that it is legal and trending. Economists project that the recreational cannabis industry will grow to $6.8 billion by 2020. Considering that the cannabis industry is poised to thrive on the background of proven medical and recreational benefits, a number of firms have become active on the Toronto Stock Exchange (TSX) in recent times. These firms in a bid to expand production and gain share, have invested quite a lot of money in research