Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 23

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 23
---
 value of the Shares or if a Record Date Stockholder makes a Section
307(b)(2) Election, no taxable loss will be realized for federal income tax purposes if the Record Date Stockholder retains a Right but
allows it to lapse without exercise. Moreover, the existing federal income tax basis of the related Old Share will not be reduced if
such lapse occurs (i.e., upon the lapse of any Right received pursuant to this Offering, any portion of the Record Date Stockholder’s
U.S. federal income tax basis in such Record Date Stockholder’s Old Share that would have been allocated to such Right if such
Right had been sold or exercised rather than allowed to lapse shall continue to be included in the Record Date Stockholder’s U.S.
federal income tax basis in such Record Date Stockholder’s Old Share).

Exercise of Rights.If a Record Date Stockholder
exercises a Right, the Record Date Stockholder’s existing federal income tax basis in the related Old Share must be allocated between
such Right and the Old Share in proportion to their respective fair market values as of the date of distribution of such Rights (effectively
reducing the Record Date Stockholder’s basis in their Old Share). Upon such exercise of the Record Date Stockholder’s Rights,
the New Shares received by the Record Date Stockholder pursuant to such exercise will have a federal income tax basis equal to the sum
of the basis of such Rights as described in the previous sentence and the Subscription Price paid for the New Shares (as increased by
any servicing fee charged to the Record Date Stockholder by his broker, bank or trust company and other similar costs). If the Record
Date Stockholder subsequently sells such New Shares (and holds such Shares as capital assets at the time of their sale), the Record

Date Stockholder will recognize a capital gain or
loss equal to the difference between the amount received from the sale of the New Shares and the Record Date Stockholder’s federal
income tax basis in the New Shares as described above. Such capital gain or loss will be long-term capital gain or loss if the New Shares
are sold more than one year after the date that the New Shares are acquired by the Record Date Stockholder.

For Record Date Stockholders Not Making a Section 307(b)(2) Election When the Fair Market Value of the Rights Distributed is Less than 15% of the Total Fair Market Value of the Fund’s Outstanding Shares:

Lapse of Rights. If the fair market value
of the Rights distributed is less than 15