Quote:
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hood's function : to prevent glare (ghosting)
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To elaborate a little, ghosting just one manifestation of lens flare. It is simply the most noticeable form of lens flare so the terms are often used interchangeably. Lens flare can also result in reduced contrast in a photo which is often much less noticeable than ghosting and can go unnoticed until you get back to your computer and see that all of your pictures look a little flat and dull. In addition to protection, I think this is the other reason that people may leave their lens hoods on all the time.