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 ?
We do not believe that there have been any cases of so-called window-dressing,'' Sudo said in a written statement.
Prosecutors have also found that the director in charge of the bank's accounting department advised Hiroshi Kubota, 68, then NCB chairman and president, of the window-dressing maneuvers in June 1997, they said.
Prosecutors have questioned a former chairman and a former president of the failed Nippon Credit Bank (NCB) over alleged window-dressing of a financial statement to conceal bad loans, investigation sources said Friday.
Onjack concluded, "We looked at several solutions before choosing ICC, but most of them were expensive window-dressing for traditional VAN services.
Celebrity window-dressing aside, the dictionary lives up to its promise of taking scary medical-ese and explaining the terms in everyday language.
Most of Fitch's interactive clients choose us because our services don't reflect the theory/practice split in the marketing services industry -- between consultancies whose real talent lies in thoroughly researched brand platforms on paper, and all the design firms and web shops offering solid interfaces with brand as mere window-dressing.