How to apply shell command to each line of a command output?

Question

It's probably easiest to use xargs. In your case:

ls -1 | xargs -L1 echo

The -L flag ensures the input is read properly. From the man page of xargs:

-L number
    Call utility for every number non-empty lines read. 
    A line ending with a space continues to the next non-empty line. [...]

You can use a basic prepend operation on each line:

ls -1 | while read line ; do echo $line ; done

Or you can pipe the output to sed for more complex operations:

ls -1 | sed 's/^\(.*\)$/echo \1/'

You can use a for loop:

for file in * ; do
   echo "$file"
done

Note that if the command in question accepts multiple arguments, then using xargs is almost always more efficient as it only has to spawn the utility in question once instead of multiple times.

You actually can use sed to do it, provided it is GNU sed.

... | sed 's/match/command \0/e'

How it works:

1. Substitute match with command match
2. On substitution execute command
3. Replace substituted line with command output.

for s in `cmd`; do echo $s; done

If cmd has a large output:

cmd | xargs -L1 echo

xargs fails with with backslashes, quotes. It needs to be something like

ls -1 |tr \\n \\0 |xargs -0 -iTHIS echo "THIS is a file."

xargs -0 option:

-0, --null
          Input  items are terminated by a null character instead of by whitespace, and the quotes and backslash are
          not special (every character is taken literally).  Disables the end of file string, which is treated  like
          any  other argument.  Useful when input items might contain white space, quote marks, or backslashes.  The
          GNU find -print0 option produces input suitable for this mode.

ls -1 terminates the items with newline characters, so tr translates them into null characters.

This approach is about 50 times slower than iterating manually with for ... (see Michael Aaron Safyans answer) (3.55s vs. 0.066s). But for other input commands like locate, find, reading from a file (tr \\n \\0 <file) or similar, you have to work with xargs like this.