An addon domain is a fully functional domain that can be created from your cpanel. Once it's created it will have it's own email, and it's own folder from within the public_html directory.

Addon domain url's look likewww.domain.com
Sub domain url's look like forum.domain.com cat.domain.com etc.domain.com the www is replaced with anything you want.
Parked domains are a place holder site. You park it on top of another site and it becomes a single page of the site you park it on.
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