Lopi tote

i was looking at the lopi tote pattern in the free patterns section and i was wondering what it means when this happens:

CO 80 sts. place marker, join, and knit in stock st for 2.5 inches.

im confused, what are you supposed to be joining anyways???

It looks like your supposed to be knitting in the round.

okay…so when it says join it means to knit the first stitch so now the first and last stitches are connected???

Yes, you can see video of it here.