The U.S. Securities and Exchange Commission on Thursday halted trading in the shares of Zoom Technologies (ticker symbol: ZOOM), citing “concerns about investors confusing this issuer with a similarly named Nasdaq-listed issuer” during the coronavirus pandemic. That other issuer is Zoom Video Communications (ticker symbol: ZM), whose stock price has, well, zoomed in recent days as droves of workers, confined to their homes to reduce the spread of COVID-19, have turned to its remote meeting services.
Meanwhile, Zoom Technologies, a so-called penny stock traded over the counter, had risen more than 240% over the same time frame before the SEC suspended it. At its high at the end of last week, the “ZOOM” stock had increased nearly sevenfold—from around $3 a share to more than $20—in the span of a month. That’s in spite of the fact that Zoom Technologies, according to the SEC, has not made “any public disclosure” whatsoever—including reporting on its finances or “its operations, if any”—since 2015. The company most recently reported that it was headquartered in Beijing.