Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 39

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 39
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 or ambiguities in tax laws, such as changes in corporate and individual
income tax rates, and in the dividends received deduction for corporate taxpayers or the lower rates applicable to certain dividends.

Because the claim on an issuer’s earnings represented
by preferred stock may become onerous when interest rates fall below the rate payable on the stock or for other reasons, the issuer may
redeem preferred stock, generally after an initial period of call protection in which the stock is not redeemable. Thus, in declining
interest rate environments in particular, the Fund’s holdings of higher dividend-paying preferred stocks may be reduced and the
Fund may be unable to acquire securities paying comparable rates with the redemption proceeds.

Other Securities

Although it has no current intention do so to any
material extent, the Investment Adviser may determine to invest the Fund’s assets in some or all of the following securities from
time to time.

Corporate Bonds, Government Debt Securities and Other Debt Securities

The Fund may invest in corporate bonds, debentures
and other debt securities, and in investment companies holding such instruments. Debt securities in which the Fund may invest may pay
fixed or variable rates of interest. Bonds and other debt securities generally are issued by corporations and other issuers to borrow
money from investors. The issuer pays the investor a fixed or variable rate of interest and normally must repay the amount borrowed on
or before maturity. Certain debt securities are “perpetual” in that they have no maturity date.

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The Fund may invest in government debt securities,
including those of emerging market issuers or of other non-U.S. issuers. These securities may be U.S. dollar- denominated or non-U.S.
dollar-denominated and include: (a) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other
governments with taxing authority or by their agencies or instrumentalities; and (b) debt obligations of supranational entities. Government
debt securities include: debt securities issued or guaranteed by governments, government agencies or instrumentalities and political
subdivisions; debt securities issued by government owned, controlled or sponsored entities; interests in entities organized and operated
for the purpose of restructuring the investment characteristics issued by the above noted issuers; or debt securities issued by supranational
entities such as the World Bank or the European Union. The Fund may also invest in securities denominated in currencies of emerging market
countries. Emerging market debt securities generally are rated in the lower rating categories of recognized credit