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yes it does, I was wondering if the line should be a closed circle, but apparently you can go backwards on the same line to close the path - so many things to discover ! for example if I assign four buses (or other vehicles) to one line, are they created at a proper distance from one another ? there is a mod which shows the line a bus belongs to, I'll give it a try
thanks giladteller
 
In order for vehicles on the same line to start with a proper distance, you'll have to do that manually. Note that they will not stay at that same distance due to breakdowns and traffic.

If the first stop is occupied by another bus (same line or not) it will start at the second stop when you add it to the line (etc. etc.)
 
It took a while for me to discover that too. It wouldn't have hurt to have let the tutorial say so. It said explicitly that tram lines had to loop around to be able to close, so I assumed the same was true for metros.