Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 42

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 42
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 security, and a warrant may offer greater potential for capital appreciation as well
as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent
any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date.
These factors can make warrants more speculative than other types of investments. The sale of a warrant results in a long or short-term
capital gain or loss depending on the period for which the warrant is held.

Repurchase Agreements

The Fund has agreed to purchase securities from financial
institutions subject to the seller’s agreement to repurchase them at an agreed-upon time and price (“repurchase agreements”).
The financial institutions with whom the Fund enters into repurchase agreements are banks and broker/dealers, which the Investment Adviser
considers creditworthy. The seller under a repurchase agreement will be required to maintain the value of the securities as collateral,
subject to the agreement at not less than the repurchase price plus accrued interest. The Investment Adviser monitors the mark-to-market
of the value of the collateral, and, if necessary, requires the seller to maintain additional securities, so that the value of the collateral
is not less than the repurchase price. Default by or bankruptcy of the seller would, however, expose the Fund to possible loss because
of adverse market action or delays in connection with the disposition of the underlying securities.

<div align='center'>RISK FACTORS</div>

An investment in the Fund’s Shares is subject to risks. The value of the Fund’s investments will increase or decrease based on changes in the prices of the investments it holds. You could lose money by investing in the Fund. By itself, the Fund does not constitute a balanced investment program. You should consider carefully the following principal risks before investing in the Fund. There may be additional risks that the Fund does not currently foresee or consider material. You may wish to consult with your legal or tax advisors, before deciding whether to invest in the Fund. This section describes the principal risk factors associated with investment in the Fund specifically, as well as those factors generally associated with investment in an investment company with investment objectives, investment policies, capital structure or trading markets similar to the Fund’s. Each risk summarized below is a risk of investing in the Fund and different risks may be more significant at different times depending upon market conditions or other factors. The Fund bears these risks directly and indirectly through its investments in other investment