Sub domains are websites that logically belong to your site.
according to my knowledge in a single domain you can create multiple domain.
If you want to speed up your website, you can make a browser open up more connections by using subdomains for things like images, javascript, css, etc.
For instance if you purchased example.com, you could use the following sub-domains which would all be housed under the "me" of example.com :
test1.example.com
test2.example.com
test.example.com