Fund Description: General American Investors Inc., 5.95% Cumulative Preferred Stock, Series B, liquidation preference $25 per share, redeemable at the issuer's option on or after 9/24/2008 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. <p> Distributions of 5.95% ($1.4875) per annum are paid quarterly on 3/24, 6/24, 9/24 & 12/24 to holders of record on 3/7, 6/7, 9/7 & 12/7 respectively (NOTE: the ex-dividend date is one business day prior to the record date). <p> Dividends paid by preferreds issued by closed-end funds can be 0% to 100% eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and can also be 0% to 100% eligible for the dividends received deduction for corporate holders (see page 28 of the prospectus for further information). <p> In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. The Series B Preferred Stock may not be issued unless it is rated "Aaa" by Moody's Investors Service, Inc. In order to keep this rating, the composition of the Company's portfolio must reflect the guidelines established by Moody's, and the Company will be required to maintain a minimum discounted asset coverage ratio with respect to the Series B Preferred Stock. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.