Company: CLM
Filing Date: 2025-04-21
Form Type: 424B3
Source: 0001398344-25-007380
Chunk: 52

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-21
Form: 424B3
Chunk 52
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 gains or losses from the sale of properties. Equity REITs will be affected by conditions in the real estate rental market
and by changes in the value of the properties they own. Mortgage REITs invest primarily in mortgages and similar real estate interests
and receive interest payments from the owners of the mortgaged properties. They are paid interest by the owners of the financed properties.
Mortgage REITs will be affected by changes in creditworthiness of borrowers and changes in interest rates. Hybrid REITs invest both in
real property and in mortgages. Equity and mortgage REITs are dependent upon management skills, may not be diversified and are subject
to the risks of financing projects.

Dividends paid by REITs will not generally qualify
for the reduced U.S. federal income tax rates applicable to qualified dividends under the Code, provided, however, the Fund may designate
certain dividends from a REIT as “Section 199A dividends,” which may be taxed to individual Stockholders and other non-corporate
Stockholders at a reduced effective U.S. federal income tax rate depending on whether certain requirements are satisfied. Investors should
see the discussion under the heading “Certain Additional Material United States Federal Income Tax Consequences” for more
information relating to Section 199A dividends.

The Fund’s investment in REITs may include
an additional risk to Stockholders. Some or all of a REIT’s annual distributions to its investors may constitute a non-taxable
return of capital. Any such return of capital will generally reduce the Fund’s basis in the REIT investment, but not below zero.
To the extent the distributions from a particular REIT exceed the Fund’s basis in such REIT, the Fund will generally recognize
gain. In part because REIT distributions often include a nontaxable return of capital, Fund distributions to Stockholders may also include
a nontaxable return of capital. Stockholders that receive such a distribution will also reduce their tax basis in their shares of the
Fund, but not below zero. To the extent the distribution exceeds a Stockholder’s basis in the Fund shares, such Stockholder will
generally recognize capital gain.

Repurchase Agreement Risk.The Fund does not enter into nor does it currently intend to enter into repurchase agreements, however, if the Fund were to enter into repurchase agreements, the Fund could suffer a loss if the proceeds from a sale of the securities underlying a repurchase agreement to which it is a party turns out to be less