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Plugins are more advanced extensions and are in essence event handlers. In the execution of any part of Joomla, be it the core, a module or a component, an event can be triggered. When an event is triggered, plugins that are registered with the application to handle that event execute. For example, a plugin could be used to intercept user-submitted articles and filter out bad words.

Examples: Content - Load Modules, Editor - TinyMCE