Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 35

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 35
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 markets of the United
States and developed foreign markets. Disclosure and regulatory standards in many respects are less stringent than in the United States
and developed foreign markets. There also may be a lower level of monitoring and regulation of securities markets in emerging market
countries and the activities of investors in such markets and enforcement of existing regulations has been extremely limited. Many emerging
countries have experienced substantial, and in some periods extremely high, rates of inflation for many years. Inflation and rapid fluctuations
in inflation rates have had and may continue to have very negative effects on the economies and securities markets of certain emerging
countries. Economies in emerging markets generally are heavily dependent upon international trade and, accordingly, have been and may
continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values, and other protectionist
measures imposed or negotiated by the countries with which they trade. The economies of these countries also have been and may continue
to be adversely affected by economic conditions in the countries in which they trade. The economies of countries with emerging markets
may also be predominantly based on only a few industries or dependent on revenues from particular commodities. In addition, custodial
services and other costs relating to investment in foreign markets may be more expensive in emerging markets than in many developed foreign
markets, which could reduce the Fund’s income from such securities.

In many cases, 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