Biotechnology stocks are firms that are active in the sector and publicly traded. Biotechnology companies use applied biology for advancements in current methodologies in a variety of industries. The field uses living organisms and bio-processes in many sectors, such as medicine, engineering, agriculture and technology. Since there is a lot of research and development in this sector, small biotech stocks that can develop a new advancement in technology can become very wealthy firms and the stock price can move up sharply. Biotechnology stocks raise money in the public market to help fund this research.