All layers can be masked, filtered or transformed using effects. Masks hide parts of a layer using another layer as a reference (usually another image or video layer, sometimes a shape layer). Filters change the visual appearance of a layer much like a filter in front of a camera lens. Transforms can change the geometry or position of a layer using reference data obtained from motion tracking.
Filters, masks and transforms are always applied to layers and affect only the layer they are applied to. The exception are Adjustment Layers, which have no own visual content, but are applied to the current state of the compositing stack.
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