window dressing

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Window dressing

Trading activity near the end of a quarter or fiscal year that is designed to improve the appearance of a portfolio to be presented to clients or shareholders. For example, a portfolio manager may sell losing positions so as to display only positions that have gained in value. Financial institutions have also been criticized for a different type of window dressing as many moved debt off the balance sheet near the end of the quarter in a temporary manner. This made the bank appear to have less leverage than it actually did.

Window Dressing

The act or practice of buying and selling securities on a portfolio immediately before a report is due in order to make the portfolio look more profitable or otherwise healthier than it has been. For example, the portfolio manager may sell stocks that have performed poorly and buy those that have performed well. Portfolios receive window dressing in order to make them look more attractive to prospective investors, which in turn makes the portfolio manager look more successful. The practice is also called dressing up a portfolio or portfolio dressing. See also: Manager Universe (benchmark).

window dressing

An adjustment made to a portfolio or financial statement to create false appearances. For example, a manager may decide to provide window dressing to a portfolio by selling stock that has declined in value and replacing it with stock that has increased in value. Such activity creates the impression of successful portfolio management.

window dressing

the use of discretion in the application of ACCOUNTING PRINCIPLES so as to report PROFIT and ASSET figures which are flattering to the company. Window dressing is a form of CREATIVE ACCOUNTING which is concerned with making modest adjustment to sales, debtors and stock items when preparing year-end ANNUAL REPORTS AND ACCOUNTS.
References in periodicals archive ?
The three former executives are suspected of playing a central role in the window dressing under the new set-up.
CHESTER, England -- Window dressing can make a truly distinctive statement in any home but often, homeowners pay little attention to their windows and use curtains merely to block out the sun.
And CCAD student Duane Hurn was chosen to turn his artistic talents to window dressing.
Staff from the Redditchbased department store completed the level two diploma, which covers everything from credit card handling and window dressing to health and safety and team work.
WINDOW DRESSING Passers-by stop in their tracks yesterday to see Nadia's display in Dublin Picture: BRIAN McEVOY
DO AND RODENSTOCK Club member James Radley, from Hertfordshire's J Oliver Radley Opticians, has scooped top prize in an international window dressing competition.
A House Couturier have blinds in leather and faux alligator and crocodile - perfect for sophisticated exotic window dressing.
Monmouth retailers are supporting this year's festival by taking part in a window dressing competition.
The ensemble sings here as well (in ``Movin' Out,'' all the songs were sung by a single performer), but, skilled as these performers clearly are, Tharp is using them as little more than window dressing.
But a lot of what the police do is window dressing.
Volunteers for the new Sacriston shop should be prepared to give three hours a week to help with sorting donated goods, serving customers, steaming clothes and window dressing.
There was also a jazz-themed window dressing competition for the town's shops.