Dr , ft , Mr , and Mrs are other examples. These are read aloud as their unabbreviated full forms. A few words lop off the first part, for example bus and plane , though these are now so well established that they are really no longer thought of as reduced forms, but as words in their own right. There is a significant proportion of abbreviations which it is possible for an English speaker to pronounce as words rather than as sequences of letters of the alphabet. A few abbreviations are pronounced both ways, VAT being the prime example.
Acronyms are often new words.
The word Nato did not exist before it began to be used as a quick way of referring to the North Atlantic Treaty Organization. It is not, in fact, a very typical English word, although it is easy enough for English speakers to pronounce. The fact that it is not written in capital letters, and is a common noun rather than the name of an organization, also helps to disguise it. This is the sort of acronym that easily makes its way into a dictionary. Some organizations deliberately choose terms for products, projects, or equipment so that the initials will make an existing name.