Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 51

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 51
---

convertible security’s investment value. The conversion value of a convertible security is determined by the market price of the
underlying common stock. If the conversion value is low relative to the investment value, the price of the convertible security is governed
principally by its investment value. Generally, the conversion value decreases as the convertible security approaches maturity. To the
extent the market price of the underlying common stock approaches or exceeds the conversion price, the price of the convertible security
will be increasingly influenced by its conversion value. A convertible security generally will sell at a premium over its conversion
value by the extent to which investors place value on the right to acquire the underlying common stock while holding a fixed income security.

A convertible security may be subject to redemption
at the option of the issuer at a price established in the convertible security’s governing instrument. If a convertible security
held by the Fund is called for redemption, the Fund will be required to permit the issuer to redeem the security, convert it into the
underlying common stock or sell it to a third party. Any of these actions could have an adverse effect on the Fund’s ability to
achieve its investment objective.

Credit Risk. Fixed income securities
rated B or below by S&Ps or Moody’s may be purchased by the Fund. These securities have speculative characteristics and changes
in economic conditions or other circumstances are more likely to lead to a weakened capacity of those issuers to make principal or interest
payments, as compared to issuers of more highly rated securities.

Debt Security Risk.In addition to
interest rate risk, call risk and extension risk, debt securities are also subject to the risk that they may also lose value if the issuer
fails to make principal or interest payments when due, or the credit quality of the issuer falls.

Extension Risk.The Fund is subject
to the risk that an issuer will exercise its right to pay principal on an obligation held by that Fund (such as mortgage-backed securities)
later than expected. This may happen when there is a rise in interest rates. These events may lengthen the duration (i.e., interest
rate sensitivity) and potentially reduce the value of these securities.

Foreign Currency Risk. Although the
Fund will report its net asset value and pay expenses and distributions in U.S. dollars, the Fund may invest in foreign securities denominated
or quoted in currencies other than the U.S. dollar. Therefore, changes in foreign currency exchange rates will affect the U.S. dollar
value of the Fund’s investment securities and net asset