What is 'Leptokurtic'
Leptokurtic is a statistical distribution where the points along the Xaxis are clustered, resulting in a higher peak (higher kurtosis) than the curvature found in a normal distribution. This high peak and corresponding fat tails means the distribution is more clustered around the mean than in a mesokurtic or platykurtic distribution, and will have a relatively smaller standard deviation. A distribution is leptokurtic when the kurtosis value is a large positive. The prefix "lepto" means "thin," like the shape of its peak.
BREAKING DOWN 'Leptokurtic'
When analyzing historical returns, kurtosis helps gauge an asset's level of risk. A leptokurtic distribution means that small changes happen less frequently because historical values have clustered by the mean. However, this also means that large fluctuations are more likely within the fat tails.
Leptokurtosis can impact how analysts estimate value at risk (VaR). An investor using a normal distribution to estimate VaR will overestimate at low levels of significance, but will overestimate at high levels of significance if the return distribution is leptokurtic. This is the result of the leptokurtic distribution having a fatter tail. The fat tail means risk is coming from outlier events and extreme observations are much more likely to occur. Therefore, conservative investors would probably avoid this type of return distribution.

Mesokurtic
A term used in a statistical context where the kurtosis of a ... 
Platykurtosis
A statistical measure that indicates the level of peakedness ... 
Normal Distribution
A probability distribution that plots all of its values in a ... 
Distribution
1. When trading volume is higher than that of the previous day ... 
Distribution Yield
The amount of cash flow received or paid out by an annuity, REIT ... 
Cluster Analysis
An investment approach that places securities into groups based ...

Forex Education
Trading With Gaussian Models Of Statistics
The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications. 
Fundamental Analysis
Find The Right Fit With Probability Distributions
Discover a few of the most popular probability distributions and how to calculate them. 
Mutual Funds & ETFs
Stock Market Risk: Wagging The Tails
The bell curve is an excellent way to evaluate stock market risk over the long term. 
Fundamental Analysis
Quantitative Analysis Of Hedge Funds
Hedge fund analysis requires more than just the metrics used to analyze mutual funds. 
Professionals
Backtesting ValueatRisk (VaR): The Basics
Learn how to test your VaR model for accuracy. 
Markets
The Uses And Limits Of Volatility
Check out how the assumptions of theoretical risk models compare to actual market performance. 
Stock Analysis
Is Breitburn Energy's Dividend Sustainable? (AAPL, BBEP)
Income investors have had a rough year. Weak energy prices have taken a bite out of the cash flow of several of the energy industry's top dividendpaying stocks. That has forced these companies ... 
Retirement
Stretch Your Savings By Working Into Your 70s
Staying employed a little longer may allow for a more comfortable retirement. 
Retirement
SIMPLE IRAs: Distributions
By Denise Appleby Distributions from SIMPLE IRAs must occur eventually. Until required distribution rules apply, distributions are usually elective . The tax and penalty treatment of distributions ... 
Investing
Value at Risk (VaR)
Value at risk, often referred to as VaR, measures the amount of potential loss that could happen in an investment or a portfolio of investments over a given time period.

Is my nonqualified Roth IRA distribution subject to taxes or early distribution ...
The ordering rules must be applied to determine whether the distribution is subject to income taxes and/or the early distribution ... Read Answer >> 
What are some common measures of risk used in risk management?
Learn about common risk measures used in risk management and how to use common risk management techniques to assess the risk ... Read Answer >> 
How are distribution channels generally organized?
Find out how distribution channels are commonly organized, and learn about the most important elements in the distribution ... Read Answer >> 
Why are shareholder distributions eliminated and not added to the net income when ...
When considering selling an S Corp. I am being told that shareholder distributions cannot be added back to determine its ... Read Answer >> 
Can I replace the $7,000 in Jan 2016 and avoid paying taxes on the $7,000 excess ...
I closed an IRA account in Jan 2015 and received $9,000. I forgot that and withdrew my required $7,000 minimum distribution ... Read Answer >> 
I have an IRA with aftertax money in it. How do I avoid being taxed again?
... Read Answer >>