What is an acronym?
An acronym is a type of abbreviation. (1)
An acronym is formed from the first letters of a group of words. (1)
An acronym is pronounced as a word. (1)

What are some examples of acronyms?
NASA – National Aeronautical and Space Administration
NATO – North American Treaty Organization
OPEC – Organization of Petroleum Exporting Countries
PIN – personal identification number (code for bank card)
RAM – random access memory (computer memory)
SIM – subscriber identification module (card for mobile phone)
VAT – value added tax (sales tax in the UK)
ZIP – zone improvement plan (post code in the USA)

VAT (value added tax) is a special case. It can be 2 types of abbreviation:
It can be an acronym and we pronounce it as one word /væt/ (rhymes with cat)
It can also be treated as an initialism and we pronounce each letter separately “v”, “a”, “t”


When is an acronym capitalized?
If the first letters of the full form are capital letters, then the acronym is written in capital letters. Example: NATO (1)
If the first letters of the full form are not capital letters, it can be either uppercase or lowercase. Example: pin or PIN (1)

Are full stops (periods) used in acronyms?
No. Acronyms are used as words and pronounced as words. (1)
Example: Use PIN not P.I.N.

Resources
1. https://www.crownacademyenglish.com/types-english-abbreviations/

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