Bitcoin Forum

Investors backed the wrong zoom lol
SEC pauses Zoom Technologies (despite trading longer than zoom video platform)
Whoever has the most money has the most power. Can zoom technologies take SEC to court since all their
stock profits vanished? Probably not.

https://www.cnbc.com/2020/03/26/sec-pauses-zoom-technologies-as-traders-confuse-it-with-zoom-video.html

https://i.redd.it/a1qbccy02tv41.jpg

I really don't think they should've cancelled it from being searchable, that's not making the US market look very transparant at all... They might have caused more problems by delisting it too...

I've heard this is a common scam though (with people putting dot com or blockchain in the names of things) so it might have been a precaution but imo they still should've left it up.

It was the same with Gilead($GILD) technologies, where people were wanting to buy into it due to the rumours about them having a cure for the coronavirus. Apparently, a lot of people mistakenly bought Gildan($GIL) instead, the clothing company.. I actually thought stuff like this could only possibly happen in the cryptocurrency space.

SEC should't have pause trade. People ought to be meticulous enough to different markets, and I am sure these people who bought these shares are not all new to trading. Sometime ago, I almost bought the wrong link from coinmarketcap, I had to use symbols and the trading exchange to stop my confusion, I could have bought a shit I may never have the market to liquidate my position.

This confusion can easily be avoided by putting restriction on companies having the same or similar training name, symbols etc. It's a bit understand when this kind of confusions occurs in the cryptocurrency industry since this space is unregulated and new projects are launching every day with the scammers hoping to deceive gullible Investors with using names similar to already established projects. This just remember me of the early days of bitcoin cash when newbies were mistaking it for bitcoin and bought them.

It's just unprofessional for this to happen in a market that's more advance. How was this confirm to be the case, like how was the SEC able to find out people were buying the wrong Zoom or they just felt that should be the case since Zoom (the video) has been more in the news lately?.

This is really almost impossible to achieve as there are just so much companies existing in the US alone, and it's not rare for 2 same companies to have a similar name.

It's only based on assumption, but it's a fair assumption. The usage of the Zoom(with ticker $ZM) software has been booming due to the pandemic, and the ZOOM Technologies, Inc. company(with ticker $ZOOM, the comany having no connection with the Zoom software) rose a lot in stock price without any fundamental reason.

Reminds me of a certain Bitcoin wannabe that called itself BCC, having inconveniently forgotten that it already belonged to Bitconnect. And then they doubled down on bad karma by tricking more people on the website to buy not-Bitcoin by giving Bitcoin their own weird name.

Wasn't any regulator able to step in and stop innocent people from being conned into buying not-Bitcoin.

At the same time, don't know if should feel sorry for people not doing enough dd when parting with money.

I understand your point of view but don't you think that "correlation is not causation"?

For example

https://lh3.googleusercontent.com/proxy/ImTE8I1acGgnORl0omdJYsAttfb_obighQjko7JX7tbwM6SqYAlTIwaxSZLxobm05bhIi8bGDyZTRAbslTELGmI64PjrDVfB-QJA4FqsriOF7YD6EzmsqnlDQnKhORXZBbn_HDRx4Q

Completely depends on the case. On your example though, it's taking 2 random data that has little connection and just putting their charts side by side. In this case, both are stocks, and both have "zoom" in their names. And this is not the first time that this happened. The same has happened with Gilead($GILD) & Gildan Activewear($GIL), and Tesla($TSLA) & Tiziana Life Sciences($TLSA).

I don't know who to even feel sorry for, The traders who bought the wrong Zoom or the zoom video platform which was overshadowed by the wrong Zoom Technologies in stock markets?  ;D
Imagine you are just there then your stock prices go through the roof just because it has an almost similar Tick to that of another stock.

If they have bought or did support that wrong Zoom technology in spite on buying that Zoom video then the price had risen or peak like that then you wont really consider it for it to be a mistake in your own personal reason.

For those people who have supported the right one then they cant really expect for those kind of gains yet  132% on a stock wasnt so bad after all.Unless if were talking crypto coins on here  8)

First of all I would like to start off with saying that if you have any other article about this you should post it, because this one requires you to cancel your adblock and that is literally the opposite of what we are using adblock for, if a website with ads wants me to close adblock so that they could show me the ads, that is not happening at all.

Secondly SEC did the right thing, if people are idiots enough to buy the wrong stocks, they should be saved and protected otherwise they would have done even worse deals in the future. I don't know if they bought the wrong one or they actually saw the increase and just wanted to get in on the profit train regardless of what the stock was, there are tons that does the same thing on crypto world, maybe these guys did it on stock market?

In fact, investors were right to invest in Zoom but due to technical errors of the team, Zoom lost video documents. Zoom has really brought a lot of profits in recent years, in terms of financial investment, Zoom has done very well. But this is the age of technology and personal data. It's very normal to store data. Facebook also steals user information at Facebook and it only helps the service to be more convenient. So why is zooming wrong? can you show me the reason?

Oh, both are different companies? Interesting.
I guess the pausing is to prevent other investors and the owners of zoom tech from selling or benefitting for undeserved profits while the actual investors take the losses.
Well, if the price of Zoom technologies returns back to exactly where it was or a little above it before the acquisition of other zoom  then there is no need to go to court.

They'd easily be able to sell after the pause. The pause is more as to prevent people from buying the wrong stock.

There's nothing to go to court for in the first place. It's not Zoom technologies fault that people bought their stock unintentionally anyway. And we can't even say that Zoom Technologies took advantage of the name and ticker, as it's not a new company.

I mean trading in the Zoom Technology stock has been paused by SEC meaning folks who definitely bought due to FOMO are  in big trouble of counting losses. If even if trading resumes. The first thing to happen is that the price will dump as people will be looking to exit as soon as possible.