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  1. An electrical signal is clipped if the signal level exceeds the capabilities of the amplifier. It is a distortion of the signal.
  2. Refers to a type of distortion that occurs when an amplifier is driven into an overload condition. Usually the "clipped" waveform contains an excess of high-frequency energy. The sound becomes hard and edgy. Hard clipping is the most frequent cause of "burned out" tweeters. Even a low-powered amplifier or receiver driven into clipping can damage tweeters which would otherwise last virtually forever. Source: http://www.owenscorning.com/around/sound/glossary.asp