Yes. that is how it works. They began giving picks for unsigned players in the 1st, 2nd, and 3rd rounds in 2012. Before that you teams were not awarded a compensatory pick for unsigned players. In the 1st and 2bd round I believe it has pretty much been the same since they started awarding compensatory picks. Before the current CBA in the 3rd round, they used to give a pick at the end of the round, but that was changed in the new CBA.
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