What does the word 'acronym' means?
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noun. ac·ro·nym ˈa-krə-ˌnim. : a word (such as NATO, radar, or laser) formed from the initial letter or letters of each of the successive parts or major parts of a compound term. also : an abbreviation (such as FBI) formed from initial letters : initialism.
Acronyms are simply abbreviations created from the first letter of each word in a phrase or series of words. The word ATM, for example, is an acronym that stands for automated teller machine.