“ZOOM” stock stopped after investors confused with Zoom Video stock

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What is your name In many cases, it’s the stock market, or stock market.

The U.S. Securities and Exchange Commission suspended trading on shares of Zoom Technologies [ticker symbol: ZOOM] on Thursday, saying during a coronavirus pandemic, “Investors are confusing this with a stock listed on the NASDAQ. Isn’t it? ” Another publisher, Zoom Video Communications [ticker symbol: ZM], recently used a stock contest as a crowd of workers trapped in their homes used remote conferencing services to reduce the spread of COVID-19. Is soaring.

Zoom Video’s stock has jumped 50% since last month, when the broader market peak S & P 500 fell more than 20%.

Zoom Technologies, on the other hand, is a so-called penny stock traded over the counter, rising more than 240% in the same time frame before the SEC was suspended. At the end of last week, the highest price of ZOOM rose nearly seven-fold during the month, from about $ 3 to $ 20 per share. According to the SEC, despite the fact that Zoom Technologies hasn’t made any disclosures since 2015, including reporting on finance and “running business, if any”. Headquartered in Beijing.

This is not the first time an investor has bought the wrong stock after an investor confused the ticker symbol with a high profile company stock, especially during volatile market events such as public offerings. In 2017, investors bid on Snap Interactive’s stake in Snap Inc. [the maker of the social media app Snapchat] in preparation for its IPO, before Snap Inc. went public. [Snap Interactive eventually changed its name to PeerStream a year after the Snapchat maker IPO.]

Also, in 2015, Ionis Pharmaceuticals, a biotechnology company originally named Isis Pharmaceuticals, announced its name along with the ticker symbol, “ ISIS Pharmaceuticals, ” due to concerns over its relationship with terrorist groups in the Islamic state. “To” IONS “.

When Twitter announced its listing in 2013, the inventory of its subsequently bankrupt retailer, Tweeter Home Entertainment, surged by up to 2,200% in the two days before it was shut down.

Other cases of false stock identities include Nest Labs and Nestor [stocks with the ticker symbol “NEST” shot when Google acquired Nest Labs in 2014]. Facebook and Physician Formula Holdings [traded before the ticker “FACE” before the acquisition]; also, Monster Beverage Corp. and Monster Worldwide reportedly confused brokers with other companies in 2011, according to market authorities. He misordered $ 144 million worth of stock before he got confused.

When buying stock, investors may want to add another item to their due diligence list. Double check the ticker symbol.

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