Below is an extract from the documentation for CGI which should clear things up. See the full documentation at HTTP COOKIES for full details.

" a domain This is a partial or complete domain name for which the cookie is valid. The browser will return the cookie to any host that matches the partial domain name. For example, if you specify a domain name of ".capricorn.com", then the browser will return the cookie to Web servers running on any of the machines "www.capricorn.com", "www2.capricorn.com", "feckless.capricorn.com", etc. Domain names must contain at least two periods to prevent attempts to match on top level domains like ".edu". If no domain is specified, then the browser will only return the cookie to servers on the host the cookie originated from."