When you enter paragraph text, the lines of text wrap to fit the dimensions of the bounding box. You can enter multiple paragraphs and apply paragraph formatting.
You can resize the bounding box at any time, which causes the text to reflow within the adjusted rectangle.
When you enter paragraph text, it has the properties set in the Character and Paragraph panels. You can change these properties later by selecting the text and modifying settings in the Character and Paragraph panels.