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An ''acronym'' is an [[abbreviationisminitialism]] pronounced as a real word. '''N'''orth '''A'''tlantic '''T'''reaty '''O'''rganization is routinely pronounced 'nay-toe', and spelled, as a proper noun, '''Nato''' (the other letters are not capped).
''Scuba'', '''S'''elf '''C'''ontained '''U'''nderwater '''B'''reathing '''A'''pparatus, aka "scuba" is another famous acronym.