Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 54

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 54
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 price for the Shares. Because the
market price of the Shares will be determined by factors such as relative supply of and demand for the Shares in the market, general
market and economic conditions, and other factors beyond the control of the Fund, the Fund cannot predict whether the Shares will trade
at, below or above net asset value.

| 35 |

Portfolio Turnover Risk.The Investment
Adviser cannot predict the Fund’s securities portfolio turnover rate with certain accuracy, but anticipates that its annual portfolio
turnover rate will normally range between 10% and 90% under normal market conditions. However, it could be materially higher under certain
conditions. Higher portfolio turnover rates could result in corresponding increases in brokerage commissions and may generate short-term
capital gains taxable as ordinary income.

Preferred Securities Risk.Investment
in preferred securities carries risks including credit risk, deferral risk, redemption risk, limited voting rights, risk of subordination
and lack of liquidity. Fully taxable or hybrid preferred securities typically contain provisions that allow an issuer, at its discretion,
to defer distributions for up to 20 consecutive quarters. Traditional preferreds also contain provisions that allow an issuer, under
certain conditions to skip (in the case of “noncumulative preferreds”) or defer (in the case of “cumulative preferreds”),
dividend payments. If the Fund owns a preferred security that is deferring its distributions, the Fund may be required to report income
for tax purposes while it is not receiving any distributions. Preferred securities typically contain provisions that allow for redemption
in the event of tax or security law changes in addition to call features at the option of the issuer. In the event of a redemption, the
Fund may not be able to reinvest the proceeds at comparable rates of return. Preferred securities typically do not provide any voting
rights, except in cases when dividends are in arrears beyond a certain time period, which varies by issue. Preferred securities are subordinated
to bonds and other debt instruments in a company’s capital structure in terms of priority to corporate income and liquidation payments,
and therefore will be subject to greater credit risk than those debt instruments. Preferred securities may be substantially less liquid
than many other securities, such as U.S. government securities, corporate debt or common stocks. Dividends paid on preferred securities
will generally not qualify for the reduced federal income tax rates applicable to qualified dividends under the Code. See “Certain
Additional Material United States Federal Income Tax Considerations.”

Real Estate Investment Trust (“RE