NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. Significant Accounting Policies
The Gabelli Equity Trust Inc. ("Equity Trust") is a closed-end, non-diversified management investment company
organized as a Maryland corporation and registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), whose primary objective is long-term growth of capital. The Equity Trust had no operations
until August 11, 1986, when it sold 10,696 shares of common stock to Gabelli Funds, Inc. (the "Adviser") for
$100,008. Investment operations commenced on August 21, 1986. The preparation of financial statements in
accordance with generally accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ
from those estimates. The following is a summary of significant accounting policies followed by the Equity Trust in
the preparation of its financial statements.
Security Valuation. Portfolio securities which are traded on a stock exchange or NASDAQ National Market
System are valued at the last sale price as of the close of business on the day the securities are being valued, or
lacking any sales, at the mean between closing bid and asked prices. Other over-the-counter securities are valued
at the most recent bid prices as obtained from one or more dealers that make markets in the securities. Portfolio
securities which are traded both in the over-the-counter market and on a stock exchange are valued according to
the broadest and most representative market, as determined by the Adviser. Securities traded primarily on
foreign exchanges are valued at the closing price immediately prior to the close of the New York Stock Exchange
of such securities on their respective exchanges or markets. Securities and assets for which market quotations are
not readily available are valued at fair market value as determined in good faith by or under the direction of the
Board of Directors of the