MM is commonly used in finance to refer to ‘million.’ It is an abbreviation derived from the Roman numeral system where ‘M’ stands for ‘mille,’ meaning thousand. Thus, ‘MM’ signifies one million, which is 1,000,000.
This shorthand is frequently seen in financial documents, reports, and discussions, especially when dealing with large sums of money. Using ‘MM’ can help streamline communication and make it easier to read financial data without writing out the full number, which can be cumbersome and cluttered.
For example, in an investment report, you might see values like ‘$5MM’ to indicate five million dollars. This abbreviation is particularly useful in contexts where space is limited, such as on charts or graphs.