Another Case of Stock Ticker Confusion
Ticker confusion is a situation that occurs when investors get a bit too trigger happy. This year, we’ve been able to witness two major cases of company stocks getting a significant boost due to investment mistakes.
The first came when people invested in the wrong ‘Zoom’ company. When Zoom Video Communications (ZM) had its first public offering, Zoom Technologies (ZTNO) stock went along and enjoyed a steady rise. ZTNO stocks were suspended sooner rather than later on the grounds of confusion, at a price of $10.40. For reference, the price at which they reopened was a mere 30 cents. The company doesn’t even have any analysts, and has a low market capitalization, sitting at $1 million.
That event took place a few months ago and must’ve been a valuable lesson that investors have learned and grown from. Except they haven’t. Another similar occurrence happened just a few days ago, with the stocks TSLA and TLSA.
The two cases are a bit different; the first one had two companies with similar names but noticeably different markers, while it’s the other way around in the more recent one. TSLA stands for Tesla, the tech giant we’ve all heard off, while TLSA designates Tiziana Life Sciences. The latter is a biotech firm, and similar to Zoom Technologies, they have no sales. However, at least one analyst is covering the company. Tiziana Life Sciences has been making some moves in 2020, but its stocks have undoubtedly been positively affected by ticker confusion.
When you look at the stock growth of the two companies, the graphs look eerily similar. Over the past month, Tiziana’s stock rose 47%, compared to Tesla’s 56%. Even when you take a slightly more long-term look, you see the same thing. While Tesla’s year to date stock definitely leads, with a 270% increase, Tiziana is not far behind at 219%.
Google seems to be aiding with the confusion by showing information about Tesla when you search for TLSA. However, that shouldn’t be an excuse; always make sure to check a share multiple times before you invest.
- Trading Instrument
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