Window Dressing Law and Legal Definition

Window dressing means making a company look better financially than it really is. It can be a trading activity near the end of a quarter or fiscal year that is designed to dress up a portfolio to be presented to clients or shareholders or an accounting gimmickry which makes a financial statement show a more favorable condition than that actually exists. Special adjustments in financial position give the appearance of adequate liquidity and healthy balance sheet, whereas actual conditions may not be so.