In order to be able to rearrange type by changing the box size, you will have to create it with the Area Type Tool associated with a path (such as a rectangle). Did you do that?
No. I am using the type tool. I wanted to put some text on a flyer. I don't need it associated with it.
I was under the assumption that you could resize the text box without it affecting the text inside. Let's say I only had a narrow space for text but oversized my text box. I should be able to make it smaller but keep the same font size.
When you use the Type Tool, the type is an object unrelated to anything else; when you change the Font Size in the Character palette/panel, the type and its Bounding Box changes.
If you wush to place the type inside a specific space, you must create a path corresponding to the space and then use the Type on Path Tool (clicking the path).
The term Type implies that it is more than just text.
Are you sure you've got a text box and not just a bounding box.
The two look pretty much the same. Try turning off bounding boxes and see what happens.
If what you have got IS indeed a text box, of course you can resize it without altering the size of the type.
Do this with the direct selection tool.
It was my text box that was showing and not the bounding box.
Works perfectly fine now!