Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 110

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 110
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, or (iii) the stock of such corporation with respect to which such dividend is
paid is readily tradable on an established securities market in the United States. A “qualified foreign corporation” does
not include any foreign corporation which for the taxable year of the corporation in which the dividend was paid, or the preceding taxable
year, is a “passive foreign investment company” (as defined in the Code). In the case of securities lending transactions,
payments in lieu of dividends are not qualified dividends. The Fund’s dividends, other than qualified dividends and capital gains
dividends, will be fully taxable at ordinary income tax rates unless further legislative action is taken.

| B-20 |

A dividend will not be treated as qualified dividend
income (whether received by the Fund or paid by the Fund to a stockholder) if (1) the dividend is received with respect to any share
held for fewer than 61 days during the 121-day period beginning on the date which is 60 days before the date on which such share becomes
ex- dividend with respect to such dividend, (or fewer than 91 days during the associated 181-day period in the case of certain preferred
stocks), (2) to the extent that the recipient is under an obligation (whether pursuant to a short sale or otherwise) to make related
payments with respect to positions in substantially similar or related property, or (3) if the recipient elects to have the dividend
treated as investment income for purposes of the limitation on deductibility of investment interest. Distributions of income by the Fund,
other than qualified dividend income and capital gains dividends, are taxed as ordinary income, at rates currently up to 37% for taxpayers
other than corporations.

We cannot assure you as to what percentage of the
dividends paid on the shares will consist of qualified dividend income or long-term capital gains, both of which are taxed at lower rates
for individuals than are ordinary income and short-term capital gains.

Dividends received by the Fund from REITs generally
are not expected to qualify for treatment as qualified dividend income. However, to the extent the Fund invests in REITs, the Fund may
designate dividends it pays to its Stockholders as “Section 199A dividends” so that individual and non-corporate Stockholders
may be eligible for a 20% deduction with respect to such dividends, provided such Stockholders have satisfied the holding period requirement
for the Fund’s Shares and certain other conditions. The