GABELLI EQUITY TRUST INC - Rights Offering Update

Note: Gabelli Equity Trust is currently running a "rights offering." This gives existing shareholders a chance to buy more shares at a set price. Think of it as a members-only sale to help the fund raise extra cash.

1. What is the latest news?

The fund recently updated the terms of this offering. If you plan to participate, please note these changes:

• New Price: The price to buy new shares is now $5.00 per share.
• New Deadline: You have until April 21, 2026, to participate.
• Action Required: If you previously asked your broker to buy shares at the old price, that request is now cancelled. You must contact your broker to re-submit your order at the new $5.00 price.
• Subscription Ratio: You receive one right for every share you held on the record date. These rights allow you to buy one new share for every three rights you hold.

2. What does this company do?

Gabelli Equity Trust acts as a professional money manager. Instead of picking stocks yourself, you entrust your money to them. They invest in companies they believe are undervalued, using a strategy called "Private Market Value with a Catalyst." Led by legendary investor Mario Gabelli, the fund hunts for bargains that have a specific reason—like a merger or management change—to increase in value.

3. Why are they raising money?

The fund aims to raise about $155 million to buy more stocks. By increasing the fund's size, they gain more cash to invest in new opportunities. A larger fund also helps lower the cost per share, as fixed expenses are spread across more assets.

4. What are the risks?

• Market Risk: If the stock market drops, the value of the companies the fund owns will fall, and your investment will lose value.
• Dilution: Issuing many new shares can reduce the value of your existing stake. The fund estimates this could cause a small dip (about 0.90%) in the value of each share.
• Leverage: The fund borrows money to invest more than it holds in cash. This can boost gains when the market rises, but it makes losses feel much worse when the market falls. The fund must pay interest on this debt regardless of how its investments perform.
• Non-Diversification Risk: The fund holds larger positions in fewer companies than a typical mutual fund. This can lead to more price swings if those specific companies perform poorly.

5. Is it a good deal?

As of March 31, 2026, the fund’s "Net Asset Value"—the actual value of its stocks minus its debts—was $5.55 per share. The market price was $5.60. Since the offering price is $5.00, you are buying shares for less than the value of the assets they represent.

6. Where will it trade?

The company trades on the New York Stock Exchange (NYSE) under the symbol GAB. The new shares will be identical to your current shares and will trade under the same ticker.

How to decide: Before you participate, ask yourself:

1. Do I want to increase my position? If you believe in the fund's long-term strategy, buying at $5.00 (a discount to the current $5.55 NAV) may be attractive.
2. Am I comfortable with leverage? Remember that this fund uses borrowed money, which increases both your potential upside and your potential risk.
3. Have I contacted my broker? If you want to participate, don't wait until the last minute. Reach out to your brokerage firm now to ensure your order is placed correctly under the new $5.00 terms.

Disclaimer: I am an AI, not a financial advisor. Investing involves risk, especially with funds that use leverage. Please read the official documents from your broker before acting. If you are unsure, consult a qualified professional.