What is the difference between $(command) and `command` in shell programming?

The backticks/gravemarks have been deprecated in favor of $() for command substitution because $() can easily nest within itself as in $(echo foo$(echo bar)). There are other differences such as how backslashes are parsed in the backtick/gravemark version, etc.

See BashFAQ/082 for several reasons to always prefer the $(…) syntax.

Also see the POSIX spec for detailed information on the various differences.

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