- Enough dealers messed up Zoom video Stock with Zoom technologies that the Securities and Exchange Commission has stopped trading their shares.
- The agency cited "concerns over the confusion of this issuer with a NASDAQ-listed issuer" on Thursday Explanation.
- Zoom Video's shares have risen sharply through 2020 as increasing activity from home increases interest in its video conferencing software.
- Similar misunderstandings took place in April 2019When Zoom Video's IPO brought enough dealers to Zoom Technologies, the stock rose almost 100%.
- Watch the trade in zoom videos live here.
The SEC temporarily halted trading in Zoom Technologies on Wednesday, and "concerns over the confusion of this issuer with a NASDAQ-listed issuer" in one Explanation. The agency also highlighted the lack of publicity from Zoom Technologies since 2015 as a factor in the suspension of trade.
Zoom Video Communications has made great strides in the corona virus pandemic as more and more people work from home and use video conferencing software. The company's shares have risen by around 116% since the beginning of the year.
Zoom Technologies stock has increased more than 800% since the beginning of the year, but the company has little in common with the company of the same name. The stock rose 23% on Wednesday alone. It is likely that traders wishing to benefit from the boom in video conferencing activities confused Zoom Technologies' shares with Zoom Video and aroused record interest in the over-the-counter share.
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The two companies use similar tickers, with Zoom Video being traded under ZM and Zoom Technologies as ZOOM.
"The Commission warns broker-dealers, shareholders and potential buyers to carefully review the above information, along with any other information currently available and any information later released by the company," warned the SEC on Thursday afternoon.
The lock lasts from Thursday to 11:59 p.m. ET on April 8, the agency added.
A similar change between the two companies took place when Zoom Video went public in April 2019. Zoom Technologies recovered almost 100% on IPO day although there is no new information for retailers to buy into.
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