# Central Limit Theorem

*Math & Statistics — Finicade finance glossary*

The reason the bell curve is everywhere: add up enough independent random bits and their total tends to a normal distribution, whatever the pieces looked like. It's the theoretical licence for so much of finance assuming normality.

**Also known as:** clt

**Related terms:** [Normal Distribution](https://finicade.com/glossary/normal-distribution), [Probability](https://finicade.com/glossary/probability), [Standard Deviation](https://finicade.com/glossary/standard-deviation)

**Taught in:** Math Masters — The Central Limit Theorem

Source: https://finicade.com/glossary/central-limit-theorem