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First lets know what is the domain parking in a general view:

Domain parking is an extremely inexpensive way to secure a domain for later development, redirection of Web traffic, or re-sale. Domain registrants, or sellers, commonly offer domain parking free with domain registration, as there is virtually no cost involved with domain parking.
A parked domain includes one simple page. If the site is intended for development, the page will indicate it is under construction or coming soon. Domain parking can be renewed annually, and there is no deadline as to when a site need be developed. You might find you don’t have time, or you might decide to let the domain expire at the end of the contract, typically one year. In this case, the only investment lost is a few dollars.
If you decide to develop your domain, you will need to pay for hosting services at that point. The right hosting service will provide enough space for your website and any special scripts or services you require. Once the domain is being hosted, it is no longer parked.
Article Source:
http://www.wisegeek.com/what-is-domain-parking.htm

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