Flaherty & Crumrine Preferred Income Fund Incorporated (the Fund) is a diversified, closed-end management investment company. The Fund's investment objective is to provide its common shareholders with high current income consistent with the preservation of capital. The Fund invests in a portfolio of preferred securities, which includes preferred stocks eligible for the inter-corporate dividends received deduction (DRD) and fully taxable preferred securities. Approximately 80% of the Fund's net assets will be invested in preferred securities. Also, the Fund invests over 25% of its total assets in the financials sector, including bank, thrifts and mortgage finance, diversified financial services, finance, consumer finance, capital markets, asset management and custody, investment banking and brokerage, insurance, insurance brokerage and real estate investment trust industries. Flaherty & Crumrine Incorporated is the Fund's investment advisor.