--bare::
-Create a bare repository. If GIT_DIR environment is not set, it is set to the
+Create a bare repository. If `GIT_DIR` environment is not set, it is set to the
current working directory.
--template=<template_directory>::
TEMPLATE DIRECTORY
------------------
-The template directory contains files and directories that will be copied to
-the `$GIT_DIR` after it is created.
+Files and directories in the template directory whose name do not start with a
+dot will be copied to the `$GIT_DIR` after it is created.
The template directory will be one of the following (in order):