Modigliani and Miller were professors at the Graduate School of Industrial Administration at Carnegie Mellon University. After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. Updates to your enrollment status will be shown on your account page. HBS Online does not use race, gender, ethnicity, or any protected class as criteria for enrollment for any HBS Online program. Understanding the financial implications of your decisions and clearly communicating those decisions to key stakeholders can help advance your career.
Financial Terminology: 20 Financial Terms to Know
For non-finance professionals, the thought of talking data, forecasts, and valuations can seem daunting. But developing your financial skills so that you have financial fluency can help you excel professionally and make a greater impact on your company. If you’re looking to avoid the word million altogether, you won’t have much luck. The only other option is to write your entire number numerically or even convert it to scientific notation. Regardless of why you are trying to abbreviate the word “million,” you have come to the right place. In this article, we will teach you how to abbreviate the word and how to use the abbreviation for “million.” Let’s first understand what million means.
How Do You Abbreviate Million Dollars?
The use of two m’s to denote millions is becoming less common. Frequently, in finance and accounting, an analyst will use k to denote thousands and a capitalized M to denote millions. Yes, MM is recognized globally in the world of finance and accounting to represent one million. However, it’s important to note that it may be less known in areas where the use of Roman numerals is not common and in non-English speaking countries who may use other abbreviations.
What Is the Reverse M&M Theorem?
- If you can’t go above three M’s in a row, you can’t get to 4,000, which would be MMMM.
- Therefore, understanding and using this term is crucial in the field of finance.
- Furthermore, using MM can make a large-scale monetary value easier to quickly grasp, both visually and conceptually, as it simplifies the financial quantities being discussed or presented.
- The example below shows how figures can be portrayed in millions.
Some organizations may use “M” while others prefer “MM.” The most common abbreviation in business settings is “MM” [2]. Our easy online application is free, and no special documentation is required. All participants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program. HBS Online’s CORe and CLIMB programs require the completion of a brief application. The applications vary slightly, but all ask for some personal background information. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.
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- The use of MM to represent a million originated from the Roman numeral system, where “M” stands for thousand.
- Any universal shift would require a coordinated effort from all major institutions simultaneously.
- To summarize, our modern numerical system is the same as the Hindu-Arabic numerical system.
- For example, an annual salary of $60,000 might appear as $60k instead of $60M.
- As a data analyst who works closely with the finance industry, I‘ve always been fascinated by the ubiquitous use of “MM” as an abbreviation for millions among banking and accounting professionals.
- HBS Online’s CORe and CLIMB programs require the completion of a brief application.
- This makes financial documents easier to read and understand, particularly when dealing with large numbers.
Often, a thousand is still abbreviated as K instead of M in contemporary society. Prior to accepting a position as the Director of Operations Strategy at DJO Global, Manu was a management consultant with McKinsey & Company in Houston. He served clients, including presenting directly to C-level executives, in digital, strategy, M&A, and operations projects. While Roman numerals are technically additive (MM is really 1,000 plus 1,000 or 2,000), MM is still a fairly common way of abbreviating millions, especially in certain industries like oil and gas. This guide will explore how the notation should be used, as well as alternative symbols that are used in practice.
When to Use the Abbreviation
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling. The goal of abbreviating large numerical values is to create financial statements that appear to be more simple and concise. This allows for the interpretation of financial statements to become more accessible. Modigliani and Miller wrote their original article to negate the idea that capital structure affects a firm’s value. However, by denoting which aspects of capital structure do not affect value, the theorem showed the opposite, a reverse theorem. The reverse M&M theorem argues that capital structure can affect a company’s value by increasing or decreasing corporate information, transaction costs, taxes, and regulations.
If, say, you use it for both units and dollars in the same document, separate the different categories so your readers don’t get confused. Unfortunately, there isn’t a consistent approach to labeling units. The least ambiguous approach is to simply write what does mm mean in finance them out in words, such as “$ thousands.” This is Corporate Finance Institute’s recommended method, to avoid any potential confusion. To understand MM, we have to go back to the early days of accounting when Roman numerals were used to record ledgers.
