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.
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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