What does (angle brackets) mean in Java?

I am currently studying Java and have recently been stumped by angle brackets(<>). What exactly do they mean?

public class Pool<T>{
    public interface PoolFactory<T>{
        public T createObject();
    }
    this.freeObjects = new ArrayList<T>(maxsize)
}

What does the <T> mean? Does it means that I can create an object of type T?

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