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”.
Silicon Valley videoconferencing app Zoom Video Communication, which floated in April 2019, has experienced an explosion in popularity as millions confined to their homes under national lockdowns have used it to host group meetings as well as social catch-ups.