SINGAPORE (Jan 15): Nasdaq defines “window dressing” as trading activities near the end of a quarter or fiscal year that are designed to improve the appearance of a portfolio to be presented to clients.

Malaysia’s Capital Markets and Services Act 2007 classifies as stock market manipulations transactions in securities of a corporation that have, or are likely to have, the effect of raising or pegging or fixing, maintaining or stabilising the price of securities of the corporation on a stock market in Malaysia.

Associated with window dressing is “Portfolio Pumping”. This is an illegal act of bidding up the value of a fund’s holdings before the end of a quarter or year-end, when the fund’s performance is measured. This is done by placing a large number of orders on existing holdings, which drives up the value of the fund.

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