You can transform graphic objects, as well as groups, text blocks, and instances, by using the Free Transform tool or the options in the Modify > Transform menu. Depending on the type of element you select, you can transform, rotate, skew, scale, or distort the element. You can change or add to a selection during a transformation operation.
When you transform an object, group, text box, or instance, the Property inspector for that item displays any changes made to the item’s dimensions or position.
A bounding box appears during transform operations that involve dragging. The bounding box is rectangular (unless it was modified with the Distort command or the Envelope modifier), with its edges initially aligned parallel to the edges of the Stage. Transformation handles are located on each corner and in the middle of each side. As you drag, the bounding box previews the transformations.