Trading in shares of Zoom Technologies, a small Chinese tech company, was halted until April 8 by the US Securities and Exchange Commission on March 26 following a case of confused identities on Wall Street, Financial Times reported.
This came after concerns over investors having confused Zoom Technologies (ticker symbol ZOOM) with Zoom Video Communication (ticker symbol ZM), a much popular video-calling application.
The stock of Zoom Technologies, which has a market value of only $31.3 million, has risen by around 10 times since the beginning of 2020, the report stated.
On the other hand, the Zoom App, which is a Nasdaq-listed issuer, witnessed a doubling in its shares since the start of this year, pushing its market valuation up to a staggering $40.3 billion. Amid the coronavirus pandemic, the app has seen much growth since a lot of people have resorted to it for work and social purposes.
The SEC also suspended the Chinese tech firm due to its inability to comply with public disclosure norms since 2015. The report noted that the tech company delisted from the Nasdaq voluntarily in 2014, and that there were also some questions over whether it had any ongoing operations at all.
This, however, is not the first such instance of mistaken identities among Wall Street players. In 2013, when Twitter had announced its plans to go public, the stock of Tweeter Home Entertainment, a retailer which was then in bankruptcy, zoomed by nearly 2,200 percent over the days that followed, before it was finally halted, as per a report in Fortune.Similar was the confusion in 2017, between Snap and Snap Interactive. The latter saw investors bid up its shares in the run-up to the highly anticipated initial public offering of Snap, maker of social media app Snapchat.