Leptokurtic refers to a statistical distribution that has a sharper peak and fatter tails compared to a normal distribution. This means that data points are more concentrated around the mean, leading to a higher probability of extreme values. In a leptokurtic distribution, the kurtosis value is greater than three, indicating a higher likelihood of outliers. In practical terms, leptokurtic distributions can be found in various fields, such as finance and psychology, where extreme events or behaviors are more common than expected. Understanding this concept helps analysts better assess risks and make informed decisions based on the likelihood of rare occurrences.