Posted by **Em** on Saturday, May 28, 2011 at 12:29pm.

Hi my assignment is due like TODAY.

I need three simple criterion to evaluate whether it is good to buy shares in a company. So far I have the profability of shares, the potential for a share to be blue-chip but I am lacking a third.

I'm stuck because I have already evaluated the varying stock prices twice in two different ways, is there anything else I can do? I also looked at the volatility of the market in blue-chip criterion

HELP! What else can I use?

- Economics REALLY URGENT!!!!! -
**Ms. Sue**, Saturday, May 28, 2011 at 12:31pm
Here are some criteria I consider.

Has the company steadily increased its sales and EPS?

Is the PE in a reasonable range?

What kind of future does this company have?

- Economics REALLY URGENT!!!!! -
**Em**, Saturday, May 28, 2011 at 12:33pm
Okay. Thank-you. Quick question though, what are the EPS and PE?

- Economics REALLY URGENT!!!!! -
**Ms. Sue**, Saturday, May 28, 2011 at 12:35pm
Oh, my! You need to learn these abbreviations if you're taking an econ class and studying the stock market.

EPS = earnings per share

PE = price earnings ratio. That's the price divided by the earnings. For instance, a PE of 18 means that stock purchasers are paying 18 times the earnings for a share of that stock.

- Economics REALLY URGENT!!!!! -
**Em**, Saturday, May 28, 2011 at 12:35pm
Okay I have the EPS as earnings per share but is PE price earning ratio or private equity?

- Economics REALLY URGENT!!!!! -
**Em**, Saturday, May 28, 2011 at 12:35pm
Okay, thank-you for all your help! I think I'll use the PE

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