In Linux, cat stands for concatenate. What this gem of an application does is take input from the command line and outputs the content to either the screen or to a file. Here's a simple example.
File1.txt contains the contents "To be or not to be".
File2.txt contains the contents "That is the question".
To merge these into File3.txt that contains:
To be or not to be
That is the question
the command cat File1.txt File2.txt > File3.txt would need to be issued.
Or, you could just have the contents of both files displayed on the screen with the command cat File1.txt File2.txt.
As a Linux beginner it might not be obvious how useful this tool is. But once you get deep into using the Linux OS, writing bash scripts, programming applications, etc. you will see how much cat can do for you.