The type tool allows you to type text. If you click and hold over the type tool, there will be additional type tools you can choose from to type vertically, on a path, or on an arch.
The standard type tool will allow you to type horizontally
Click and hold to choose the Vertical Type
tool to type vertically
Click and chold to choose the Type on Path
to type along a path.
Click and hold to choose Type on Arch
to type along an arch with a specified radius and start angle.
The tool options area above the workspace allows you to change settings for the text.
Setting the Text option to Inside will have the text type at the bottom