Leptokurtic frequency distribution and Prompt Payment Code: Difference between pages

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A leptokurtic frequency distribution (or leptokurtotic distribution) has a larger number of values clustered at the peak and in the tails, than a comparable normal distribution with the same variance and mean.
(PPC).


A possible explanation for this shape is that the market under review is mean reverting for small market movements (explaining the clustering at the peak) and trending for large market movements (explaining the clustering in the tails).
Prompt payment of suppliers is encouraged or required by a number of initiatives.
 
Examples include the UK’s voluntary Prompt Payment Code and the EU’s mandatory Late Payment Directive 2011/7.
 
 
As an example, signatories to the UK Prompt Payment Code undertake to pay suppliers within a maximum of 60 days (in line with late payment legislation requirements), to work towards adopting 30 days as the norm, and to avoid any practices that adversely affect the supply chain.
 
The UK Prompt Payment Code is administered by the Chartered Institute of Credit Management (CICM).
 
 
Similar codes and legislation have been implemented in a number of jurisdictions.




== See also ==
== See also ==
* [[Frequency distribution]]
*[[Chartered Institute of Credit Management]]
* [[Leptokurtosis]]
*[[Credit]]
* [[Lognormal frequency distribution]]
* [[Norm]]
* [[Mean reversion]]
*[[Open account]]
* [[Normal distribution]]
*[[Payment practices reporting]]
* [[Normal frequency distribution]]
*[[PPC Compliance Board]]
* [[Tail]]
*[[Small Business Commissioner]]
* [[Trend analysis]]
 
* [[Volatility smile]]
 
==External link==
*[https://www.smallbusinesscommissioner.gov.uk/ppc/ Prompt Payment Code - Small Business Commissioner]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Liquidity_management]]

Revision as of 02:53, 25 December 2021

(PPC).

Prompt payment of suppliers is encouraged or required by a number of initiatives.

Examples include the UK’s voluntary Prompt Payment Code and the EU’s mandatory Late Payment Directive 2011/7.


As an example, signatories to the UK Prompt Payment Code undertake to pay suppliers within a maximum of 60 days (in line with late payment legislation requirements), to work towards adopting 30 days as the norm, and to avoid any practices that adversely affect the supply chain.

The UK Prompt Payment Code is administered by the Chartered Institute of Credit Management (CICM).


Similar codes and legislation have been implemented in a number of jurisdictions.


See also


External link