The Free Transform tool is your one-stop shop for moving, scaling, reflecting, rotating, and skewing. The tool behaves differently depending on what modifier keys you are holding.
To move: Click anywhere within the bounding box and drag.
To scale: Drag any bounding box handle (shift+drag to preserve the object's proportions). To scale from the center outward, hold the Option (Alt) key as you drag.
To rotate: Position the pointer anywhere outside the bounding box and drag.
To reflect: Drag a handle of the object's bounding box past the opposite edge or handle.
To shear: Start dragging a handle on the side of the bounding box (not a corner), and then hold down Cmd+Option (Ctrl+Alt) as you drag. Shift+drag to constrain the tool. To shear type you first have to convert it to outlines: Type > Create Outlines.