In a Direct Participation Program, $200,000 is paid to wholesaling, retailing or marketing firms engaged in the distribution of securities. This expense should be categorized under quizlet

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In a Direct Participation Program, $200,000 is paid to wholesaling, retailing or marketing firms engaged in the distribution of securities. This expense should be categorized under Underwriting compensation.

What do you mean by Underwriting compensation?

Any payment, right, interest, or benefit that a participating member has received or will receive for investment banking services such as underwriting, allocation, distribution, advising, and other services in connection with a public offering is referred to as "underwriting remuneration."

Corporate Financing Rules 5110, 2310, and 5121 of FINRA generally impose three conditions on companies that participate in public offers of securities: In connection with public offers, businesses are required to file paperwork and other information.

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