What does the term 'nesting' refer to in Premiere Pro?

In Premiere Pro, 'nesting' refers to the process of grouping multiple clips and sequences into a single sequence. This technique allows users to manage complex timelines more efficiently by reducing clutter. By nesting clips, you can apply effects or transitions to the entire nested sequence as if it were a single clip. This functionality is particularly useful when you want to create composite effects or when you need to manipulate multiple clips collectively, such as scaling, cropping, or applying color corrections uniformly across them.

The ability to nest sequences is essential when dealing with intricate editing tasks that involve multiple video or audio components since it helps to streamline workflows and maintain organization within your project. This is why grouping clips and sequences into a single sequence is the most accurate representation of what 'nesting' entails in Premiere Pro.