Investor Glossary-window dressingInvestor Glossary-window dressingInvestor Glossary-window dressingInvestor Glossary-window dressingInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Window Dressing

The HTML to link to this page
 

Window dressing can have at least two meanings. In accounting terms, window dressing refers to an assortment of alterations a bookkeeper might make to a financial statement, whether legal or illegal, so that the statement appears stronger than it is. Omitting expenses, recording sales before they occur, or delaying write-offs are possible window dressing activities in this context. A firm might engage in the accounting version of window dressing to meet liquidity requirements on financial disclosure forms. In investing, window dressing refers to the churning of a portfolio by an investment fund manager out of stocks or securities that have performed poorly and into stocks that have performed well. Window dressing in this instance typically occurs near the end of a quarter, and is aimed at making portfolios appear more profitable and fund managers more astute than they were. Alternatively, investment window dressing might also entail a fund purchasing securities in a popular, expanding sector that has nothing to do with the orientation of the fund. For instance, a utilities fund purchasing technology stocks during the late 1990s tech boom would have been engaging in window dressing.



Rate this window dressing definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1035 exchange, phantom income, command economy, diluted share, LIBOR, per diem, ex-dividend date, debt service coverage, cancelled check, Zero Cost Collar, dividends payable, implied volatility, 1031 exchange, labor relations, 144a, covered put, irrevocable trust, class C shares, quality assurance, liquidity ratio, annual return, deferred tax, margin rate, reverse mortgage, deferred revenue, inflation, stock market close, limit order, retained earnings, VIX, current ratio, FTSE, Key Rate Duration, balance sheet, APR, required rate of return, stock split, FICO score, 401a, minority interest, open position, real GDP, option premium, wholly-owned subsidiary, risk management, ex-dividend, in escrow, average price per share, EBITDA


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use