US stocks fell after news the FBI was investigating Zm’s shares, hitting a record high.
Stock markets closed at a record low, with the Dow Jones index hitting a five-year high.
Reuters:US stocks have fallen in 2017 as investors turn to alternative investments that may not perform well.
In particular, the Federal Reserve has been looking into whether Zm, the largest stock exchange in the world, may have violated its rules on dealing in short-term financial instruments.
On Friday, the US Federal Reserve released its first-ever report on the investigation.
Zm’s share price fell from $1.24 to $1,056 in less than an hour on Friday, as investors turned to alternative investment platforms, the Reuters news agency reported.
Zm said it had already halted trading in its stock and had paid the Federal Bureau of Investigation for its use of its technology, the report said.
The company also said it was investigating the Federal Securities Commissions’ decision to investigate Zm.
The Federal Reserve said on Friday it was “reviewing” whether Zmo’s stock trading activities breached its rules.
In a statement, it said:The US stock market is in the midst of an unprecedented period of market volatility, with market volatility exceeding $50,000 for the first time in history.
In some instances, market volatility has been as high as 10,000%.
We are working closely with the Federal Communications Commission (FCC) and the Federal Trade Commission (FCR) on how we can better support the marketplace.
Zmo’s shares have declined by more than 5 per cent since Friday, when the company said it would suspend trading in the US and that it would pay the Federal Department of Justice for its actions.
In a post on Friday morning, the company posted a link to a message saying it would “fully cooperate with the authorities”.
A statement posted to the company’s website on Saturday said:This has been a very stressful time for our company.
Our focus is on the ongoing investigations, and our board is working closely on how to best support our employees.
We appreciate your patience and look forward to a smooth and orderly transition for our members.