Window dressing: something to consider?

andread · Jul 3, 2006

While looking around to find an explanation for some price movements, I found a new term: window dressing. It's always annoying to see that people managing your money are using these tricks. Very professional.

Anyway, I know what it is, what I wonder is if it happens so often. Apparently it does, so I wanted to ask the more experienced people if it's something to consider at the end of a quarter.

hypostomus · Jul 3, 2006

"The meaning of your communication is the response you get."

psytrade · Jul 3, 2006

I think its very prevalent. Look at SEC.GOV, type Renaissance Technologies, or SAC Capital and youll see these funds holding nothing volatile or likely to move... highly unlikely that they get their profits from these stocks. Most definitely window dressing

Kastro_316 · Jul 3, 2006

Window dressing, bucketing, churning, all tools of the trade

andread · Jul 4, 2006

Quote from Kastro_316:

Window dressing, bucketing, churning, all tools of the trade

learned something new. Thanks

But bucketing and churning don't influence the price as window dressing, do they? They are just unethical broker's practice

minoritywin · Jul 4, 2006

what are "window dressing, churning, bucketing"?

Bitstream · Jul 4, 2006

Quote from andread:

learned something new. Thanks
But bucketing and churning don't influence the price as window dressing, do they? They are just unethical broker's practice

uh? why should it be unethical? and why blame the brokers...its funds that do that at the end of the qt, innit.

murray t turtle · Jul 4, 2006

Quote from psytrade:

I think its very prevalent. Look at SEC.GOV, type Renaissance Technologies, or SAC Capital and youll see these funds holding nothing volatile or likely to move... highly unlikely that they get their profits from these stocks. Most definitely window dressing

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Trendy SEC list, neat read ;
SAC Capital

Seasonal patterns arent predictions, nickname andread;
and in the past , more dressing in thanksgiving quarter,
less dressing July 4 quarter. Hope it helps.

andread · Jul 5, 2006

Quote from Bitstream:

uh? why should it be unethical? and why blame the brokers...its funds that do that at the end of the qt, innit.

bucketing and churning? Do funds do that?
Maybe I got the wrong definitions. I'm using the definitions from investopedia:

bucketing:
A situation where, in an attempt to make a short-term profit, a broker confirms an order to a client without actually executing it. A brokerage which engages in unscrupulous activities, such as bucketing, is often referred to as a bucket shop.

churning:
An unethical practice employed by some brokers to increase their commissions by excessively trading in a client's account. This practice violates the NASD Fair Practice Rules. It is also referred to as "churn and burn", "twisting" and "overtrading".

andread · Jul 5, 2006

Quote from murray t turtle:

================
Trendy SEC list, neat read ;
SAC Capital

Seasonal patterns arent predictions, nickname andread;
and in the past , more dressing in thanksgiving quarter,
less dressing July 4 quarter. Hope it helps.

I'm not sure I really can use it to predict. I guess not all bad stocks are subject to window dressing. My main intention was to understand why some stocks go down without a reason. I think the best way to use this is just to be careful at the end of each quarter.

Hey, I'm trying to learn something here, no jokes allowed