A parked domain can be seen as a "placeholder" for an existing website. Many clients will chose to "park" this domain on top of the exisiting website, and this allows traffic to be rerouted to the desired website.
So if the desired website was yourdomain.com, and one has registered yourdomain.net, a client can set yourdomain.net as a parked domain, and redirect traffic to yourdomain.com.
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