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There are several reasons to prune plants, such as to control it's size or shape, to stimulate healthy growth by removing diseased or damaged areas, and to enhance fruiting and flowering. Other reasons can include to prevent personal injury or property damage - think of that huge limb dangling precariously over your car in the street.
When you should prune depends on several things, but, in most cases, it should be done during the plant's dormant season; wounds caused by pruning are more susceptible to pests and diseases.