Command Substitution:

Command substitution is a mechanism that is followed by programmers in a

shell script.
In this mechanism, the output of a command replaces the command itself.
Shell operates the expansion by executing a command and then replacing
the command substitution with the standard output of the command.
In simple words, the output of a LINUX command is bundled and then used
as a command.

Example.
The seq command in Linux is used to print numbers from START to END in
steps of INCREMENT.
Syntax:
seq START INCREMENT END
Return type:
Prints numbers from START to END each in the new line by the difference of
INCREMENT.
Example:
In the below script we are printing numbers from 2 to 40 with a difference of
2. In other words, we are printing even numbers up to 40.
#!/bin/sh

# your code goes here

seq 2 2 40
Output:
We can use the output of the above command as a new command. Consider
the below script,  
Example:
#!/bin/sh
# your code goes here

echo $(seq 2 2 40)

Output:

Variables and command expansion:

During the process of command substitution, the output of the command can
be assigned to a variable, just like any other value.
Example:
In the below script we have assigned the result of the echo command to both
the strings in variables, “variable1” and “variable2” respectively. Then we
have used these variables in the echo command.
#!/bin/sh

variable1=$(echo 'Full form of gfg is' )

variable2=$(echo 'GeekforGeeks')

echo "$variable1 : $variable2"

Output:

Loss of newlines in command substitution:

In the command substitution mechanism, if the output of a command that is
being substituted contains any trailing newlines, then in that case the trailing
newlines are deleted after the substitution.
Note that embedded newlines are not deleted, but they might be removed
during word splitting.
Example:
In this script, we are using the seq command. Now seq command prints
numbers to the console and appends a newline character after each number
is printed to the console.
#!/bin/sh

# your code goes here

seq 1 2 19
Output:
Example:
In this script, we have used the result of the above command and substituted
it in the command. As you can see in the output, numbers from 1 to 39 with
the difference of 2 are printed to console. But this time they all are printed on
the same line that is without any newline character.  
#!/bin/sh

# your code goes here

echo $(seq 1 2 39)

Output: