Question : explain script

I have a script that automatically make folders to matching files. I did not write the script, and would like to understand the coding behind it. Can someone break it down for me?
@echo off
for %%a in (*.*) do (
md "%%~na" 2>nul
move "%%a" "%%~na"
)

Answer : explain script

for %%a in (*.*) - for every file put it name as a and do
md "%%~na" 2>null - make directory of name a without extension ( ~n ) and do not display error ( 2> null)
move "%%a" "%%~na" - move every file to his directory