Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 39

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 39
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 Restricted securities for which no market exists and other illiquid
investments are valued at fair value as determined in accordance with procedures approved and periodically reviewed by the Board of Directors.

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Rule 144A Securities

The Fund may invest in restricted securities that
are eligible for resale pursuant to Rule 144A under the Securities Act of 1933, as amended, (the “1933 Act”). Generally,
Rule 144A establishes a safe harbor from the registration requirements of the 1933 Act for resale by large institutional investors of
securities that are not publicly traded. The Investment Adviser determines the liquidity of the Rule 144A securities according to guidelines
adopted by the Board of Directors. The Board of Directors monitors the application of those guidelines and procedures. Securities eligible
for resale pursuant to Rule 144A, which are determined to be liquid, are not subject to the Fund’s 15% limit on investments in
illiquid securities.

Warrants

The Fund may invest in equity and index warrants
of domestic and international issuers. Equity warrants are securities that give the holder the right, but not the obligation, to subscribe
for equity issues of the issuing company or a related company at a fixed price either on a certain date or during a set period. Changes
in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may
be more volatile than the price of its underlying 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 rep