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SEC halts $ZOOM after coronavirus traders confuse it for Zoom app

Eager traders looking to cash in the coronavirus (COVID-19) pandemic have flocked to purchase shares in video-calling platform Zoom – except some bought the wrong stock.

The US Securities and Exchange Commission (SEC) tweeted Thursday it was suspending trade for Zoom Technologies — a relatively tiny holding company supposedly headquartered in Beijing — due to the confusion.

[Read: People are skipping Zoom meetings by looping videos of themselves paying attention]

Zoom Technologies’ subsidiaries reportedly develop games and electronic components for mobile phones, among other things, but the SEC shared concerns that it hadn’t filed a public disclosure statement since 2015.

Zoom Technologies share price had skyrocketed from around $3 in mid-February to $20.90 last Friday, a nearly-700% increase.

It’s highly likely investors had intended to buy shares in Zoom Video Communications, a much larger firm that went public last year, responsible for the popular free video calling app Zoom.

Zoom up 50% while rest of market down 50%

Coronavirus lockdown measures across the world have boosted Zoom‘s usage big time. Offices, schools, and universities gone digital have readily adopted Zoom as their video-calling platform of choice, while others have used it to host events like weddings and bar mitzvahs.

This increased demand has sent Zoom Video Communication’s share price from below $80 in January to an all-time-high of $159.56 on March 19.