What is the 'Normal Distribution'
The normal distribution is the probability distribution that plots all of its values in a symmetrical fashion and most of the results are situated around the probability's mean. Values are equally likely to plot either above or below the mean. Grouping takes place at values that are close to the mean and then tails off symmetrically away from the mean.
Also known as a "Gaussian distribution" or "bell curve".
BREAKING DOWN 'Normal Distribution'
The normal distribution is the most common type of distribution, and is often found in stock market analysis. Given enough observations within a sample size, it is reasonable to make the assumption that returns follow a normally distributed pattern, but this assumption can be disproved.
As with any distribution, the distributions mean, skewness and kurtosis coefficients should be calculated in order to determine the type of distribution you may be dealing with.

Symmetrical Distribution
A situation in which the values of variables occur at regular ... 
Probability Distribution
A statistical function that describes all the possible values ... 
Mesokurtic
A term used in a statistical context where the kurtosis of a ... 
Asymmetrical Distribution
A situation in which the values of variables occur at irregular ... 
T Distribution
A type of probability distribution that is theoretical and resembles ... 
Leptokurtic
A statistical distribution where the points along the Xaxis ...

Term
What a Normal Distribution Means
Normal distribution describes a symmetrical data distribution, where most of the results lie near the mean. 
Professionals
Distribution of Returns
Distribution of Returns 
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. 
Professionals
Common Probability Distribution Properties
CFA Level 1  Common Probability Distributions  Properties 
Investing Basics
Using Normal Distribution Formula To Optimize Your Portfolio
Normal or bell curve distribution can be used in portfolio theory to help portfolio managers maximize return and minimize risk. 
Professionals
Skew And Kurtosis
CFA Level 1  Statistical Concepts And Market Returns  Skew And Kurtosis 
Term
What's Skewness?
Skewness describes how a data distribution leans. 
Economics
What is a Bell Curve?
The bell curve is the most common type of graphed data distribution. 
Active Trading Fundamentals
Bet Smarter With The Monte Carlo Simulation
This technique can reduce uncertainty in estimating future outcomes.

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