Nominal level is the operating level at which an electronic signal processing device is designed to operate. The electronic circuits that make up such equipment are limited in the maximum signal they can handle and the low-level internally generated electronic noise they add to the signal. The difference between the internal noise and the maximum level is the device's dynamic range. The nominal level is the level that these devices were designed to operate at, for best dynamic range and adequate headroom. When a signal is chained with improper gain staging through many devices, clipping may occur or the system may operate with reduced dynamic range.