When you enter point text, each line of text is independent—the length of a line increases or decreases as you edit the text, but it doesn’t wrap to the next line.
The small line through the type tool
pointer
marks
the position of the text baseline. For horizontal text,
the baseline marks the line on which the text rests; for vertical
text, the baseline marks the center axis of the characters.
When you enter point text, it is created using the properties currently set in the Character panel. You can change these properties later by selecting the text and modifying settings in the Character panel.