Apical buds are the growing tips found at the top of a plant's stem or branch. They are responsible for the vertical growth of the plant and contain meristematic tissue, which allows for cell division and growth. The apical bud produces hormones that regulate growth and development, influencing the plant's overall shape and size. These buds play a crucial role in the plant's ability to adapt to its environment. When the apical bud is damaged or removed, lateral buds may become more active, leading to bushier growth. This process is known as apical dominance, where the main stem suppresses the growth of side shoots.