Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 40

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 40
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, governments of emerging countries
continue to exercise significant control over their economies, and government actions relative to the economy, as well as economic developments
generally, may affect the Fund’s investments in those countries. In addition, there is a heightened possibility of expropriation
or confiscatory taxation, imposition of withholding taxes on interest payments, or other similar developments that could affect investments
in those countries. There can be no assurance that adverse political changes will not cause the Fund to suffer a loss of any or all of
its investments.

Preferred Stocks

The Fund may invest in preferred stocks. Preferred
stock, like common stock, represents an equity ownership in an issuer. Generally, preferred stock has a priority of claim over common
stock in dividend payments and upon liquidation of the issuer. Unlike common stock, preferred stock does not usually have voting rights.
Preferred stock in some instances is convertible into common stock. Although they are equity securities, preferred stocks have characteristics
of both debt and common stock. Like debt, their promised income is contractually fixed. Like common stock, they do not have rights to
precipitate bankruptcy proceedings or collection activities in the event of missed payments. Other equity characteristics are their subordinated
position in an issuer’s capital structure and that their quality and value are heavily dependent on the profitability of the issuer
rather than on any legal claims to specific assets or cash flows.

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Distributions on preferred stock must be declared
by a board of directors and may be subject to deferral, and thus they may not be automatically payable. Income payments on preferred
stocks may be cumulative, causing dividends and distributions to accrue even if not declared by the company’s board or otherwise
made payable, or they may be non-cumulative, so that skipped dividends and distributions do not continue to accrue. There is no assurance
that dividends on preferred stocks in which the Fund invests will be declared or otherwise made payable. The Fund may invest in non-cumulative
preferred stock, although the Investment Adviser would consider, among other factors, their non-cumulative nature in making any decision
to purchase or sell such securities.

Shares of preferred stock have a liquidation value
that generally equals the original purchase price at the date of issuance. The market values of preferred stock may be affected by favorable
and unfavorable changes impacting the issuers’ industries or sectors, including companies in the utilities and financial services
sectors, which are prominent issuers of preferred stock. They may also be affected by