Firm Foundation Theory

Business, Legal & Accounting Glossary

Definition: Firm Foundation Theory

Firm Foundation Theory

Full Definition of Firm Foundation Theory

The Firm Foundation Theory is one of the important Investment Theories.

It postulates that any financial asset like a stock or real estates like a piece of property has an intrinsic value. The condition in the market either keeps the price below the intrinsic value or above the intrinsic value – it rarely remains at or around the intrinsic value. This position offers the investor a choice – in case, he/she is able to buy the stock or the real estate below its intrinsic value, he/she shall make profits when the price goes above the intrinsic value.

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Modern Language Association (MLA):
Firm Foundation Theory. Payroll & Accounting Heaven Ltd.
December 08, 2022
Chicago Manual of Style (CMS):
Firm Foundation Theory. Payroll & Accounting Heaven Ltd. (accessed: December 08, 2022).
American Psychological Association (APA):
Firm Foundation Theory. Retrieved December 08, 2022
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Definition Sources

Definitions for Firm Foundation Theory are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 3rd May, 2020 | 0 Views.