Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 108

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 108
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 income requirement described above,
the Code expressly provides the U.S. Treasury with authority to issue regulations that would exclude foreign currency gains from qualifying
income if such gains are not directly related to the Fund’s business of investing in stock or securities. While to date the U.S.
Treasury has not exercised this regulatory authority, there can be no assurance that it will not issue regulations in the future (possibly
with retroactive application) that would treat some or all of the Fund’s foreign currency gains as non-qualifying income. To the
extent it qualifies for treatment as a RIC and satisfies the above-mentioned distribution requirements, the Fund will not be subject
to U.S. federal income tax on income paid to its stockholders in the form of dividends or capital gain distributions.

| B-19 |

In order to avoid incurring a U.S. federal excise
tax obligation, the Code requires that the Fund distribute (or be deemed to have distributed) by December 31 of each calendar year an
amount at least equal to the sum of (i) 98% of its ordinary income for such year and (ii) 98.2% of its capital gain net income (which
is the excess of its realized capital gain over its realized capital loss), generally computed on the basis of the one-year period ending
on October 31 of such year, after reduction by any available capital loss carryforwards, plus (iii) 100% of any ordinary income and capital
gain net income from previous years (as previously computed) that were not paid out during such years and on which the Fund paid no U.S.
federal income tax.

Failure to Qualify as a RIC

If the Fund does not qualify as a RIC for any taxable
year, the Fund’s taxable income will be subject to corporate income taxes, and all distributions from earnings and profits, including
distributions of net capital gain (if any), will be taxable to the U.S. Holder as ordinary income. Such distributions generally will
be eligible (i) for the dividends received deduction in the case of corporate U.S. Holders and (ii) for treatment as “qualified
dividends” as discussed below, in the case of individual U.S. Holders provided certain holding period and other requirements are
met, as described below. In addition, in order to requalify for taxation as a RIC, the Fund may be required to recognize unrealized gains,
pay substantial taxes and interest, and make certain