A java.util.List (which includes both ArrayList and LinkedList) contains references to objects. That is to say, that if you have a single instance of an object and put that instance in two lists, those two lists will reference the same actual object.
In fact, Java does not have "value objects" unlike some other languages do (i.e. C, C++ and C#). Neither variables nor arrays (and by consequence, any of the collection classes like List) can ever contain objects. They can only contain references to objects.
Here's an example which uses variables to make the functionality clear:
Foo x = new Foo(); // Create a new instance of Foo and assign a reference to it to "x"
Foo y = x; // Copy the reference (not the actual object) to "y"
// At this point, both x and y points to the same object
x.setValue(1); // Set the value to 1
y.setValue(2); // Set the value to 2
System.out.println(x.getValue()); // prints "2"
Now, the exact same is true for lists as well:
List<Foo> listA = new ArrayList<Foo>();
List<Foo> listB = new ArrayList<Foo>();
listA.add(new Foo());
listB.add(listA.get(0));
// The single instance of Foo is now in both lists
listB.get(0).setValue(1);
System.out.println(listA.get(0).getValue()); // Prints "1"