Sometimes it's important to purchase one or more domain names without actually assigning them to a web site. This can happen for a large number of reasons.
You might want to reserve your domain names because you have a great idea but you haven't yet had time to get around to creating a web site. Since domain names can go fast, it's often a good idea to purchase them as soon as you can (besides, compared to other business expenses domain names are cheap).
You've got a number of trademarks that you want to protect. You might purchase the domain names without creating web sites in order to reserve the names for yourself, perhaps for future use.
You are working on a web site but don't yet want people to see it because it is not finished.
Although this might be considered cybersquatting (and hence possibly illegal), you might purchase a domain which you think might be valuable. You could then resell the domain name later at a profit.
The concept, very simply, is you purchase the domain names without creating a web site. The domain registrar simply takes your payment, reserves the name to you and does not update any DNS information (or simply creates a one page holder web site for you).
Most (if not all) domain registrars will park a domain for you at no additional charge. Why wouldn't they do so - you are paying them and they basically do not have to do anything at all.
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Unless otherwise noted, all photos and text is Copyright © Richard G Lowe, Jr.