Flaherty & Crumrine Preferred Income Fund Incorporated (the Fund) is a diversified, closed-end management investment company. Its investment objective is to provide its common shareholders with high current income consistent with the preservation of capital. The Fund invests primarily in a diversified portfolio of preferred securities. This includes traditional preferred stocks eligible for the inter-corporate dividends received deduction (DRD) and fully taxable preferred securities. Under normal market conditions, at least 80% of the Fund�s net assets will be invested in preferred securities. The Fund invests at least 25% of its total assets in the financial sector, which for this purpose is comprised of the bank, diversified financial services, finance, consumer finance, capital markets, asset management and custody, investment banking and brokerage, insurance, insurance brokers, and real estate investment trusts industries. Flaherty & Crumrine Incorporated is the investment adviser.