Window dressing is a strategy for engineering
the performance of a business portfolio so that it appears more potential and profitable to investors or stockholders, so that stocks will sell quickly. Window dressing is often performed by issuers and investment managers. Usually companies manipulate financial statements such as: balance sheets, profit losses and cash flow so that they have better performance than the real thing. The company uses an accounting trick which seems to record profits but is fictitious. That way, the results will look positive so that it will have a positive impact on customers who use their shares. So what are we doing to avoid window dressing on stocks?
the performance of a business portfolio so that it appears more potential and profitable to investors or stockholders, so that stocks will sell quickly. Window dressing is often performed by issuers and investment managers. Usually companies manipulate financial statements such as: balance sheets, profit losses and cash flow so that they have better performance than the real thing. The company uses an accounting trick which seems to record profits but is fictitious. That way, the results will look positive so that it will have a positive impact on customers who use their shares. So what are we doing to avoid window dressing on stocks?