An acronym is an abbreviation of several words in such a way that the abbreviation itself forms a word. According to Webster's, the word doesn't have to already exist; it can be a new word. Webster's cites "snafu" and "radar", two terms of World War Two vintage, as examples. Implicit is the idea that the new word has to be pronounceable and ideally easy to remember.
Frequently, acronyms are formed that use existing words (and sometimes the acronym is invented first and the phrase name represented is designed to fit the acronym). Here are some examples of acronyms that use existing words
2. UFO: Unindentified Flying Object.
3. SCUBA: Self Contained Underwater Breathing Apparatus.
4. IBM: International Business Machines.
5. VHS: Video Home System.
6. DVD: Digital Versatile Disc.
7. SNAFU: Situation Normal: All Fucked Up
8. LASER: Light Amplification by Stimulated Emission of Radiation.
9. RADAR: Radio Detection and Ranging.
10. NATO: North Atlantic Treaty Organization.
11. FAQ: Frequently Asked Questions.
12. CD-ROM: Compact Disc - Read Only Memory.
13. DNA: Deoxyribonucleic acid.
14. JPEG: Joint Photographic Experts Group.
15. ATM: Automated Teller Machine/Asynchronous Transfer Mode.
16. BCE/A.D.: Before Common Era/After Death
17. EU: European Union
18. NAFTA: North American Free Trade Agreement.
19. 4WD: 4-Wheel Drive: Four Wheel Drive.
20. AWD: All Wheel Drive.
21. CIA: Central Intelligence Agency.
22. FUBAR: Fucked Up Beyond All Reason/Recognition/Repair.
23. FIDO: Fuck/Forget It, Drive On
24. ABS: Antilock Brake System.
25. TLC: Tender Loving Care
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