What's a SPAC?

QWhat's a “SPAC”? And what does it have to do with Truth Social?

— R.C., Las Vegas

AA special purpose acquisition company (SPAC) undergoes an initial public offering (IPO) as a shell company — one with no particular operations; it exists only to eventually acquire or merge with one or more other companies. (It's also referred to as a “blank check company.”)

The company behind Truth Social, Trump Media & Technology Group (TMTG), used a SPAC to go public instead of holding an IPO of its own. TMTG merged with the SPAC Digital World Acquisition Corp. in late March, then started trading under the ticker symbol DJT. The stock is — and is likely to remain — volatile, as are many post-merger SPACs. Some such stocks keep falling, for good reason, while others recover and do well. That's why, in general, investors need to do some research before buying — and then if they do buy, to keep up with the company afterward.

QWhen I graduate from college, should I pay off my student loans as soon as possible, or just make the regular payments on them while investing elsewhere?

— D.H., online

AEither option can make sense, depending on the interest rates on your loans and the investment growth rates you expect. If your debt is costing you a lot, or at least more than you expect to earn by investing, paying it off as soon as you can makes good sense. But if you're paying, say, 6% on your loans while hoping to earn an average of 8% or more in stocks, you might choose to stick to the regular repayment schedule.