Window dressing occurs when a fund manager sells underperforming stocks and replaces them with attractive stocks for appearances' sake.
 | | Term of the Day | Words to Know | | |  | | Window Dressing | | Window dressing is a strategy used by mutual fund and other portfolio managers near the year or quarter end to improve the appearance of a fund's performance before presenting it to clients or shareholders. To window dress, the fund manager sells stocks with large losses and purchases high-flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings. | | Read More » | | Related to "Window Dressing" | | | | Mutual Fund | | A mutual fund is a type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is overseen by a professional money manager. | | Read More » | | | Business Ethics | | Business ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, and bribery. | | Read More » | | | Portfolio Manager | | A portfolio manager is responsible for investing a fund's assets, implementing its investment strategy, and managing the day-to-day portfolio trading. | | Read More » | | | Holdings | | Holdings are the securities held within the portfolio of a mutual fund, hedge fund, pension fund, or any other fund type. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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