What does CAP_NET_RAW do?

Quoting from this Security SE Answer:

CAP_NET_RAW: Any kind of packet can be forged, which includes faking senders, sending malformed packets, etc., this also allows to bind to any address (associated to the ability to fake a sender this allows to impersonate a device, legitimately used for "transparent proxying" as per the manpage but from an attacker point-of-view this term is a synonym for Man-in-The-Middle),