Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.
Why are biotech stocks so volatile?-- Francine from Florida
: Biotech stocks move up and down so much because they are held hostage to incredibly unpredictable news, particularly regarding data from drug trials. This is especially true of companies with no drugs on the market, which are often years away from revenues let alone earnings.
Are ETFs better than index funds?-- Harry from Baton Rouge
: Generally speaking, ETFs are better than index funds because they carry lower fees. However, if one is making regular purchases, ETFs can be more expensive once brokerage commissions are taken into account. But for a lump sum meant to be put away for long periods of time, I favor an ETF over the equivalent mutual fund.
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