It’s a few weeks old, but this is too good a story not to share.
The US Securities and Exchange Commission has stepped in to clear up the worst case of mistaken identity on Wall Street, suspending the shares of Zoom Technologies, a small Chinese company that investors were confusing with Zoom, the video-calling app that has seen spectacular growth during the coronavirus pandemic. The regulator said on Thursday that it was halting trading in the Beijing technology group, which uses the ticker ZOOM, until April 8 over concerns that investors were “confusing this issuer with a similarly-named Nasdaq-listed issuer . . . which has seen a rise in share price during the ongoing Covid-19 pandemic”.SEC steps in after investors buy up the wrong Zoom | Financial Times
A case of mistaken identity indeed. Zoom (the video chat platform) trades under the Ticker ZM.
The Ticker Zoom belongs to a Chinese company that makes parts for mobile devices. The accidental purchase of the wrong Zoom shares rocketed the price of the lesser-known company up by 1800%.
Subsequently, the SEC stepped in and removed Zoom from the stock market. Which is kind of a shame because I was interested in seeing where it would have ended up.