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Domain parking can be used when you want to sell a domain that you own, with the help of a domain seller. So, you "park" the domain with the seller who will then try to sell your domain for as a high price as possible.
Domain Parking is simple terms is, Parking your Domain Name somewhere ( like you park your car somewhere) along with parking Domain Name, you also allow Advertisement to be displayed on your Domain Name ( means when someone type the domain name they see advertisements ). The Parking space for Domain Name called as hosting ( like Parking Space of Car ) is given to you by the Domain Parking Companies. Displaying of advertisement is also taken care by Domain Parking Company.
Domain parking is the registration of an Internet domain name without that domain being associated with any services such as e-mail or a website. This may have been done with a view to reserving the domain name for future development, and to protect against the possibility of cybersquatting.