Abbreviation for Million and Thousand: Ok & MM Which means

This put up is a part of a sequence sponsored by Outdated Republic Surety.

Should you’re confused concerning the letter designations that stand for hundreds and tens of millions, you’re not alone. And it’s not your fault. In actual fact, it’s one in all our most continuously requested questions. Right here’s why you’re confused and what to do about it.

The place Does the mm Abbreviation Come From?

Western civilization has had two highly effective influences — the traditions of the Greeks and the Romans, and there’s typically battle. The Greeks would consult with the god of the ocean as Poseidon, whereas the Romans would name him Neptune. For the Romans, the god of wine could be Bacchus, and for the Greeks, it could be Dionysus. These variations carry themselves into many elements of our tradition, together with monetary evaluation.

As a younger banker within the mid-80s, I discovered what had been taught for a lot of many years earlier than, that we abbreviate hundreds in our evaluation with the letter M. If we needed to indicate tens of millions, we’d present that as MM. For this, we should always credit score the Romans. M is the Roman numeral for thousand and MM is supposed to convey one thousand-thousand — or million. To take it additional; one billion could be proven as $1MMM or one-thousand million.

Nonetheless, reality be recognized, if there have been an historical Roman right here and we requested him to interpret our use of Roman numerals, we’d discover that technically MM means two thousand and MMM means three thousand, so there are flaws on this custom. This jogs my memory of the outdated joke about an historical Roman that goes right into a bar, holds up two fingers in a peace signal to the bartender, and says, “5 beers, please.”

Ok Is Meant To Stand For Thousand Isn’t It?

Wait a minute, you say. I do know I’ve seen jobs posted that pay $50K, and Ok is supposed to face in for a thousand. And you’d be appropriate, due to the Greeks. Ok comes from the Greek phrase kilo which suggests a thousand. The Greeks would likewise present million as M, quick for Mega. So if we keep in step with the Greek abbreviations, then billion could be proven as a letter G (Giga). Consider your pc expressing bytes of reminiscence as kilobyte, megabyte, or gigabyte. Nonetheless, in the case of billion, we don’t actually see G or MMM because the abbreviation for billion. We usually tend to see a headline that reads the federal government spent $60B on a brand new mission. They’re utilizing B for billion. What can I say? B for billion isn’t Greek or Roman; it’s simply the primary letter of the phrase billion. A lot for consistency.

I noticed a headline not too long ago in The Each day Journal of Commerce that learn the brand new downtown put up workplace was to be constructed for $89M. On the planet of accounting and monetary evaluation, that reads $89 thousand {dollars}, however we all know from context that the headline author meant $89 million {dollars}. We generally must code-switch and use context to find out what the writer is telling us. I referenced the 2021 Related Press Stylebook utilized by nearly all of journalists to see if the information would weigh in on abbreviate thousand or million. When writing, the information advises, to make use of figures just for something lower than one million, however spell out “million,” “billion,” and ‘trillion” for numbers of 1 million or higher, reminiscent of 2.4 billion. Moreover, the Related Press recommends abbreviating tens of millions as “M” and billions as “B” in headlines.

Brokers may also generally see us talk M as hundreds once we quote surety bond charges or agent commissions. For instance, the usual Class B fee begins at $25/M for the primary $100M; then $15/M for the subsequent $400M; then $10/M for the subsequent $2MM. These charges are expressed per thousand and the MM denotes tens of millions. Likewise, we might quote you a single and mixture contractor line of authority. That line could also be expressed, as an example, as $5MM single and $15MM mixture. If you’re an agent or a contractor, you’ll have seen an e mail out of your surety underwriter that claims one thing like, “The shopper ought to improve their financial institution line to $1MM.” You now know that years of custom have skilled us to point out a million {dollars} this manner.

Whereas the fields of accounting, banking, and finance have adopted the Roman custom, different fields reminiscent of pc programming and the high-tech trade have adopted Greek-influenced abbreviations. As we combine our traditions, it generally turns into troublesome to know what somebody intends to convey expressing hundreds or tens of millions in an abbreviation. It’s an imperfect world.

Nonetheless Have Questions? We’re Right here To Assist?

At Outdated Republic Surety we search to ship transparency and readability in our communications. Should you see an abbreviation that’s complicated or unclear, please attain out to your native underwriter or department for clarification, even in case you are simply asking for a good friend. If you want to study extra about Outdated Republic Surety and a few of our companies like Business Surety Bonds, and Contract Bonds, or simply need extra data, don’t hesitate to contact us at the moment.

This weblog was initially printed on the Outdated Republic Surety web site. It’s reproduced right here with permission.