Spreads, or distributions, refer to the way in which data points are arranged or spread out across a range. They help to illustrate the variability and central tendency of a dataset. Common types of distributions include the normal distribution, which is bell-shaped, and the uniform distribution, where all outcomes are equally likely. Understanding spreads is essential in statistics for analyzing data patterns. In finance, spreads can also refer to the difference between two prices, rates, or yields. For example, the bid-ask spread represents the difference between the price a buyer is willing to pay and the price a seller is asking for an asset. This concept is crucial for traders and investors as it affects transaction costs and market liquidity.