I am following the trailhead Lightning App Builder module. Based on the content i have a doubt in the difference between app home page and custom home page.
Please help in explaining the difference.
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Take a look at this help doc that explains the different page types. Basically, the difference is:
A few differences are that there are different set of components exposed for each, app pages can have global actions added to them, app pages are built on responsive templates that can also be activated for Salesforce1, activation/assignment is done differently etc.