The Securities and Exchange Commission suspended trading of Zoom Technologies stock this week because investors were confusing it with Zoom Video, which has enjoyed major gains amid the coronavirus pandemic.
Zoom Video, with ticker symbol is “ZM,” provides videoconferencing services and amid the corona-crisis has been essential component for the remote work of many businesses. The company went public last year and has seen increase of usage and stock market price of over 112% this year so far, reaching a market cap of over $40 billion.
Zoom Technologies, with ticker symbol is “ZOOM,” is a Chinese-based, significantly smaller company. Its stock has reached more than 50% increase this month and almost 900% for the year. SEC said that the company has not disclosed any financial information since 2015.
The SEC states:
The Commission temporarily suspended trading in the securities of ZOOM because of concerns about the adequacy and accuracy of publicly available information concerning ZOOM, including its financial condition and its operations, if any, in light of the absence of any public disclosure by the company since 2015; and concerns about investors confusing this issuer with a similarly named NASDAQ-listed issuer, providing communications services, which has seen a rise in share price during the ongoing COVID-19 pandemic.
SEC’s suspension of Zoom Technologies stock will last until 9 April.
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