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Domain squatting is when somebody finds a domain name they like (XYZ .com, for example), registers the name and just sits on it.
They don't have any intention of creating a site or using the name for marketing purposes. All they hope to do is have somebody else want the site and offer them a great deal of money.
Personality I am not against people making money off of finding something first or creating something and selling it but the whole idea of domain squatting I really don't like. The idea gets worse when people get hundreds of names hoping to sell each one for thousands of dollars.
If you ever run across a person like this they think their name is worth a hole lot more than it really is. The name business.com went for almost $8 million so people think every OK name is worth $50,000 or more. That is silly. The name only cost $70 at most.
Who are they to think that www.ebusinesscommunity.net is worth $100,000? It is probably worth $5,000 or less.
There are even authors out there who are encouraging people to buy as many names as they can get their hands on hoping to sell one for big bucks. These people are not only crazy but obviously resellers for Network Solutions. Don't squat. You are wasting your time and money.
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