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window dressing

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia, Hutchinson 0.04 sec.
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.
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.


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