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They're hidden values in the game that drastically determine how a pokemon's stats will grow as it gets stronger. They're mostly used for competitive-level battling, but breeders nowadays will EV train perfect pokemon for trading in the GTS.
IV's (or Individual Values) are a value (between 0 and 31) for each of a pokemon's stats determined randomly when they're first encountered in the wild or bred. They factor into the calculation of a pokemon's final stats and allow for a variance of 62 points when the pokemon is at lvl.100.
EV's (or Effort Values) are like IV's, but more controllable. Every pokemon that your pokemon defeats yields 1-3 EV points in a particular stat. A pokemon can only earn 510 EV's during it's growth and 255 per each of its stats, and when the pokemon reaches lvl.100, their stat will increase by 1 extra point for each EV in that particular stat...allowing a variance of 63 points in each stat.
...unless you're getting into competitive-level team-building, it's best not to worry about them, but if you want to learn more, Bulbapedia has some good guides you can reference. :D
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