Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 38

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 38
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 applies only at the time a security is purchased, and the Fund is not required to dispose of securities
already owned by the Fund in the event of a change in assessment of credit quality or the removal of a rating.

Convertible Securities

The Fund may invest in convertible securities and
in investment companies holding such instruments. Convertible securities include fixed income securities that may be exchanged or converted
into a predetermined number of shares of the issuer’s underlying common stock at the option of the holder during a specified period.
Convertible securities may take the form of convertible preferred stock, convertible bonds or debentures, units consisting of “usable”
bonds and warrants or a combination of the features of several of these securities. The investment characteristics of each convertible
security vary widely, which allows convertible securities to be employed for a variety of investment strategies.

The Fund will exchange or convert convertible securities
into shares of underlying common stock when, in the opinion of the Investment Adviser, the investment characteristics of the underlying
common shares will assist the Fund in achieving its investment objective. The Fund may also elect to hold or trade convertible securities.
In selecting convertible securities, the Investment Adviser evaluates the investment characteristics of the convertible security as a
fixed income instrument, and the investment potential of the underlying equity security for capital appreciation. In evaluating these
matters with respect to a particular convertible security, the Investment Adviser considers numerous factors, including the economic
and political outlook, the value of the security relative to other investment alternatives, trends in the determinants of the issuer’s
profits, and the issuer’s management capability and practices.

Illiquid Securities

Illiquid securities are securities that are not readily
marketable. Illiquid securities include securities that have legal or contractual restrictions on resale, and repurchase agreements maturing
in more than seven days. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired or
at prices approximating the value at which the Fund is carrying the securities. Where registration is required to sell a security, the
Fund may be obligated to pay all or part of the registration expenses, and a considerable period may elapse between the decision to sell
and the time the Fund may be permitted to sell a security under an effective registration statement. If, during such a period, adverse
market conditions were to develop, the Fund might obtain a less favorable price than prevailed when it decided to sell. The Fund may
invest up to 15% of the value of its net assets in illiquid securities.