Trying to understand User Licenses

I’m struggling to understand Licensing. As I understand it:

  1. Each User automatically is a Named User with a Named User License.
  2. Each User can also belong to one or more Groups.
  3. A Group can also have a License attached.

So does that mean that when a User is added to a Group, he/she automatically gets the Group License as a Named User in that Group?

Yes, if there is one or more unused license in the group. They are allocated on a first-come, first-served basis.