Fund Description: Special Opportunities Fund, Inc. 2.75% Convertible Preferred Stock, Series C, liquidation preference $25 per share, redeemable at the issuer's option option on or after 01/21/2024 at $25 per share plus accrued and unpaid dividends, and maturing 01/21/2027. <p> Cumulative distributions of 2.75% per annum ($0.6875 per annum or $0.171875 per quarter) will be paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date fixed by the board prior to the payment date (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 30 of the prospectus for further information). <p> The preferred shares are convertible any time at the holder's option into 1.2195 common shares of Special Opportunities Fund (NYSE: SPE), an initial conversion price of $20.50 per common share (subject to adjustment, see prospectus for more details). If the price of the common stock is equal to or greater than $23.75 per share, the company may, at their option, cause the preferred shares to be converted into common shares at the then prevailing conversion price. <p> This security was not rated by Moody’s or S&P at the time of its IPO. In regard to the payment of distributions and upon liquidation, the preferred shares rank junior to the company's senior debt, equally with other preferreds of the company, and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.