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<SEC-DOCUMENT>0000935069-05-000887.txt : 20050419
<SEC-HEADER>0000935069-05-000887.hdr.sgml : 20050419
<ACCEPTANCE-DATETIME>20050419140537
ACCESSION NUMBER:		0000935069-05-000887
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050228
FILED AS OF DATE:		20050419
DATE AS OF CHANGE:		20050419
EFFECTIVENESS DATE:		20050419

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PREFERRED INCOME OPPORTUNITY FUND INC
		CENTRAL INDEX KEY:			0000882071
		IRS NUMBER:				954355600
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-06495
		FILM NUMBER:		05758877

	BUSINESS ADDRESS:	
		STREET 1:		301 E COLORADO BLVD STE 720
		STREET 2:		C/O FLAHERTY & CRUMRINE INC
		CITY:			PASADENA
		STATE:			CA
		ZIP:			91101
		BUSINESS PHONE:		8187957300

	MAIL ADDRESS:	
		STREET 1:		301 COLORADO BLVD
		STREET 2:		STE 720
		CITY:			PASADENA
		STATE:			CA
		ZIP:			91101
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>preferredincomeoppncsr.txt
<DESCRIPTION>PFO NQ
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM N-Q

             QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
                          MANAGEMENT INVESTMENT COMPANY

                  Investment Company Act file number 811-06495
                                                    ----------------------------

       FLAHERTY & CRUMRINE PREFERRED INCOME OPPORTUNITY FUND INCORPORATED
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)

                      301 E. Colorado Boulevard, Suite 720
                               PASADENA, CA 91101
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)

                               Donald F. Crumrine
                            Flaherty & Crumrine Inc.
                      301 E. Colorado Boulevard, Suite 720
                               PASADENA, CA 91101
- --------------------------------------------------------------------------------
                     (Name and address of agent for service)

        Registrant's telephone number, including area code: 626-795-7300
                                                           ---------------------

                   Date of fiscal year end: NOVEMBER 30, 2005
                                           -------------------------------------

                   Date of reporting period: FEBRUARY 28, 2005
                                            ------------------------------------

Form N-Q is to be used by  management  investment  companies,  other  than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters,  pursuant to rule 30b1-5 under
the Investment  Company Act of 1940 (17 CFR 270.30b1-5).  The Commission may use
the  information  provided  on Form N-Q in its  regulatory,  disclosure  review,
inspection, and policymaking roles.

A registrant is required to disclose the information  specified by Form N-Q, and
the Commission will make this  information  public. A registrant is not required
to respond to the  collection  of  information  contained in Form N-Q unless the
Form displays a currently  valid Office of Management and Budget ("OMB") control
number.  Please  direct  comments  concerning  the  accuracy of the  information
collection  burden  estimate and any  suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609.  The OMB has reviewed this  collection of  information  under the
clearance requirements of 44 U.S.C. ss. 3507.


<PAGE>

ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.


<PAGE>

- --------------------------------------------------------------------------------
              Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
                                                        PORTFOLIO OF INVESTMENTS
                                                   FEBRUARY 28, 2005 (UNAUDITED)
              ------------------------------------------------------------------

<TABLE>
<CAPTION>
SHARES/$ PAR                                                                                             VALUE
- ------------                                                                                           ---------

PREFERRED SECURITIES -- 92.6%
               BANKING -- 20.5%
- ------------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                                                  <C>
               ABN AMRO North America, Inc.:
        1,165    6.46% Pfd., 144A**** .........................................................    $      1,203,870*
        4,200    6.59% Pfd., 144A**** .........................................................           4,375,056*
$     150,000  BT Capital Trust B, 7.90% 01/15/27, Capital Security ...........................             163,387(1)
$     660,000  BT Preferred Capital Trust II, 7.875% 02/25/27 Capital Security ................             721,179(1)
$     250,000  Chase Capital I, 7.67% 12/01/26 Capital Security ...............................             271,486
               Citigroup, Inc.:
       72,435    5.864% Pfd., Series M ........................................................           3,732,576*
        7,700    6.213% Pfd., Series G ........................................................             402,363*
       46,000    6.231% Pfd., Series H ........................................................           2,422,360*
       31,850    6.365% Pfd., Series F ........................................................           1,690,916*
               Cobank, ACB:
       45,000    7.00% Pfd., 144A**** .........................................................           2,500,875*
       75,000    Adj. Rate Pfd., 144A**** .....................................................           4,227,750*
$     500,000  Comerica (Imperial) Capital Trust I, 9.98% 12/31/26 Capital Security, Series B .             584,522
$   2,250,000  First Hawaiian Capital I, 8.343% 07/01/27 Capital Security, Series B ...........           2,498,344(1)
$     719,000  First Union Institutional Capital I, 8.04% 12/01/26 Capital Security ...........             788,973
$   1,885,000  First Union Institutional Capital II, 7.85% 01/01/27 Capital Security ..........           2,055,998
$   4,349,000  GreenPoint Capital Trust I, 9.10% 06/01/27 Capital Security ....................           4,915,827
$   2,500,000  HBOS Capital Funding LP, 6.85% Pfd. ............................................           2,638,612(1)
        6,900  HSBC USA, Inc., $2.8575 Pfd. ...................................................             352,970*
       36,500  J.P. Morgan Chase & Co., 6.625% Pfd., Series H .................................           1,882,305*
$   1,350,000  Keycorp Institutional Capital B, 8.25% 12/15/26 Capital Security ...............           1,485,500
$   1,500,000  North Fork Capital Trust I, 8.70% 12/15/26 Capital Security ....................           1,668,945
$   1,700,000  RBS Capital Trust B, 6.80% Pfd. ................................................           1,784,176**(1)
           10  Roslyn Real Estate, 8.95% Pfd., Pvt., Series C, 144A**** .......................           1,079,875
$   1,200,000  Wachovia Capital Trust V, 7.965% 06/01/27 Capital Security, 144A**** ...........           1,325,124
- -------------------------------------------------------------------------------------------------------------------
                                                                                                         44,772,989
                                                                                                   ----------------
               FINANCIAL SERVICES -- 15.5%
- ------------------------------------------------------------------------------------------------------------------------
               The Bear Stearns Companies, Inc.:
       63,750    5.49% Pfd., Series G .........................................................           3,203,756*
       78,823    5.72% Pfd., Series F .........................................................           4,112,590*
      120,000  Fannie Mae, Adj. Rate Pfd. .....................................................           6,756,000*
               Freddie Mac:
        6,975    5.00% Pfd., Series F .........................................................             308,121*
       25,500    5.10% Pfd., Series H .........................................................           1,149,030*
       42,650    5.30% Pfd. ...................................................................           1,997,086*
</TABLE>


                                       5
<PAGE>

- --------------------------------------------------------------------------------
Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2005 (UNAUDITED)
- ------------------------------------------------------------------

<TABLE>
<CAPTION>
SHARES/$ PAR                                                                                            VALUE
- ------------                                                                                          ---------

PREFERRED SECURITIES -- (CONTINUED)
               FINANCIAL SERVICES -- (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                                                 <C>
               Lehman Brothers Holdings, Inc.:
       10,150    5.67% Pfd., Series D .........................................................    $        519,274*
      159,505    5.94% Pfd., Series C .........................................................           8,184,202*
       44,000    6.50% Pfd., Series F .........................................................           1,177,220*
      110,900  SLM Corporation, 6.97% Pfd., Series A ..........................................           6,293,575*
- -------------------------------------------------------------------------------------------------------------------
                                                                                                         33,700,854
                                                                                                   ----------------
               INSURANCE -- 9.0%
- ----------------------------------------------------------------------------------------------------------------------
$   2,000,000  AON Capital Trust A, 8.205% 01/01/27 Capital Security ..........................           2,290,780
       15,850  Everest Re Capital Trust II, 6.20% Pfd. Series B ...............................             389,117(1)
$   4,395,000  MMI Capital Trust I, 7.625% 12/15/27 Capital Security, Series B ................           4,961,779
           18  Premium Assets, Series A, Zurich RegCaPS Variable Inverse Pfd., Pvt. ...........           2,049,027*
$   5,734,000  Provident Financing Trust I, 7.405% 03/15/38 Capital Security ..................           5,530,586
               Zurich RegCaPS Funding Trust:
        1,750    6.01% Pfd., 144A**** .........................................................           1,774,334*
        2,600    6.58% Pfd., 144A**** .........................................................           2,746,549*
- -------------------------------------------------------------------------------------------------------------------
                                                                                                         19,742,172
                                                                                                   ----------------
               UTILITIES -- 39.8%
- ----------------------------------------------------------------------------------------------------------------------
               Alabama Power Company:
        4,980    4.60% Pfd. ...................................................................             471,631*
        6,485    4.72% Pfd. ...................................................................             630,180*
          868    4.92% Pfd. ...................................................................              85,337*
      120,900    5.20% Pfd. ...................................................................           3,030,963*
      225,000    5.30% Pfd. ...................................................................           5,748,750*
        6,000  Baltimore Gas & Electric Company, 6.70% Pfd., Series 1993 ......................             626,430*
        1,628  Central Hudson Gas & Electric Corporation, 4.35% Pfd., Series D, Pvt. ..........             138,258*
       10,000  Central Illinois Light Company, 4.64% Pfd. .....................................             938,050*
        8,160  Central Illinois Public Service Corporation, 4.90% Pfd. ........................             784,625*
        3,798  Central Maine Power Company, 4.75% Pfd. ........................................             345,656*
       16,679  Central Vermont Public Service Corporation, 8.30% Sinking Fund Pfd. Pvt. .......           1,734,533*
               Connecticut Light & Power Company:
        2,050    4.50% Pfd., Series 1956 ......................................................              84,901*
        2,900    $2.20 Pfd., Series 1949 ......................................................             117,435*
        9,652    $3.24 Pfd. ...................................................................             506,585*
        2,000  Consolidated Edison Company of New York, 4.65% Pfd., Series C ..................             187,030*
        7,500  Dayton Power and Light Company, 3.90% Pfd., Series C ...........................             552,262*
</TABLE>


                                       6
<PAGE>

- --------------------------------------------------------------------------------
              Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
                                            PORTFOLIO OF INVESTMENTS (CONTINUED)
                                                   FEBRUARY 28, 2005 (UNAUDITED)
              ------------------------------------------------------------------

<TABLE>
<CAPTION>
SHARES/$ PAR                                                                                            VALUE
- ------------                                                                                          ---------

PREFERRED SECURITIES -- (CONTINUED)
               UTILITIES -- (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                                                 <C>
               Duke Energy Corporation:
        8,004    4.50% Pfd., Series C, Pvt. ...................................................    $        703,872*
       34,943    7.85% Pfd., Series S .........................................................           3,622,017*
               Duquesne Light Company:
       15,030    3.75% Pfd. ...................................................................             508,916*
       25,775    6.50% Pfd. ...................................................................           1,407,444*
        5,000  Energy East Capital Trust I, 8.25% Pfd. ........................................             131,975
               Entergy Arkansas, Inc.:
        2,840    4.56% Pfd. ...................................................................             237,907*
        3,050    4.56% Pfd., Series 1965 ......................................................             255,498*
        1,050    6.08% Pfd. ...................................................................             109,258*
       13,500    7.40% Pfd. ...................................................................           1,404,607*
        5,880    7.80% Pfd. ...................................................................             615,019*
        2,265    7.88% Pfd. ...................................................................             236,387*
       23,914    $1.96 Pfd. ...................................................................             598,448*
        2,441  Entergy Gulf States, Inc., 7.56% Pfd. ..........................................             248,543*
               Entergy Louisiana, Inc.:
          299    5.16% Pfd. ...................................................................              26,795*
          705    6.44% Pfd. ...................................................................              69,901*
        4,174    7.36% Pfd. ...................................................................             434,388*
      175,000    8.00% Pfd., Series 92 ........................................................           4,414,375*
               Entergy Mississippi, Inc.:
        3,791    4.36% Pfd. ...................................................................             287,073*
        5,000    4.92% Pfd. ...................................................................             427,250*
        8,500    7.44% Pfd. ...................................................................             880,855*
       10,900  Enterprise Capital Trust I, 7.44% Pfd., Series A ...............................             277,132
               Florida Power Company:
       10,000    4.58% Pfd. ...................................................................             905,400*
        2,000    4.75% Pfd. ...................................................................             186,860*
               Great Plains Energy, Inc.:
        1,625    4.20% Pfd. ...................................................................             123,313*
        2,000    4.35% Pfd. ...................................................................             157,190*
               Hawaiian Electric Company, Inc.:
        1,411    5.00% Pfd., Series D .........................................................              27,063*
        6,688    5.00% Pfd., Series E .........................................................             128,276*
$   3,750,000  Houston Light & Power, Capital Trust II, 8.257% 02/01/37 Capital Security ......           4,114,519
       30,500  Indianapolis Power & Light Company, 5.65% Pfd. .................................           2,904,057*
      340,000  Interstate Power & Light Company, 8.375% Pfd., Series B ........................          11,478,400*
        2,588  New York State Electric & Gas, $4.50 Pfd., Series 1949 .........................             222,115*
</TABLE>


                                       7
<PAGE>

- --------------------------------------------------------------------------------
Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2005 (UNAUDITED)
- ------------------------------------------------------------------

<TABLE>
<CAPTION>
SHARES/$ PAR                                                                                            VALUE
- ------------                                                                                          ---------

PREFERRED SECURITIES -- (CONTINUED)
               UTILITIES -- (CONTINUED)
- --------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                                                 <C>
       12,265  Northern Indiana Public Service Company, Adj. Rate Pfd., Series A ............      $        623,062*
               Ohio Power Company:
        3,018    4.20% Pfd. .................................................................               251,324*
        1,251    4.40% Pfd. .................................................................               109,137*
               Pacific Enterprises:
       13,680    $4.36 Pfd. .................................................................             1,191,049*
       24,985    $4.50 Pfd. .................................................................             2,245,152*
       15,730    $4.75 Pfd., Series 53 ......................................................             1,491,991*
               PacifiCorp:
        5,672    $4.56 Pfd. .................................................................               509,374*
        6,458    $4.72 Pfd. .................................................................               600,303*
       12,250    $7.48 Sinking Fund Pfd. ....................................................             1,311,485*
               PECO Energy Company:
        1,100    $4.30 Pfd., Series B .......................................................                92,521*
        5,000    $4.40 Pfd., Series C .......................................................               406,850*
       17,537  Portland General Electric, 7.75% Sinking Fund Pfd. ...........................             1,776,937*
       14,020  Public Service Electric & Gas Company, 5.28% Pfd., Series E ..................             1,373,469*
               San Diego Gas & Electric Company:
       55,210    $1.70 Pfd ..................................................................             1,438,773*
       30,000    $1.7625 Sinking Fund Pfd. ..................................................               774,150*
       85,000  Savannah Electric & Gas Company, 6.00% Pfd. ..................................             2,209,150*
               South Carolina Electric & Gas Company:
       14,226    5.125% Purchase Fund Pfd., Pvt. ............................................               732,070*
        7,774    6.00% Purchase Fund Pfd., Pvt. .............................................               396,241*
       57,646  Southern California Edison, 4.08% Pfd. .......................................             1,123,232*
       60,000  Southern Union Company, 7.55% Pfd. ...........................................             1,658,100*
$     750,000  TXU Electric Capital V, 8.175% 01/30/37 Capital Security .....................               825,244
       10,000  TXU US Holdings Company, $4.00 Pfd., Series TES ..............................               745,750*
        5,600  Union Electric Company, 4.56% Pfd. ...........................................               518,112*
               Virginia Electric & Power Company:
        1,665    $4.04 Pfd. .................................................................               137,213*
        2,270    $4.20 Pfd. .................................................................               194,482*
        1,673    $4.80 Pfd. .................................................................               163,812*
        2,878    $6.98 Pfd. .................................................................               296,765*
       12,500    $7.05 Pfd. .................................................................             1,289,500*
        2,262  Washington Gas & Light Company, $4.25 Pfd. ...................................               199,373*
       12,863  Wisconsin Power & Light, 6.20% Pfd. ..........................................             1,320,194*
</TABLE>


                                       8
<PAGE>

- --------------------------------------------------------------------------------
              Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
                                            PORTFOLIO OF INVESTMENTS (CONTINUED)
                                                   FEBRUARY 28, 2005 (UNAUDITED)
              ------------------------------------------------------------------

<TABLE>
<CAPTION>
SHARES/$ PAR                                                                                            VALUE
- ------------                                                                                          ---------

PREFERRED SECURITIES -- (CONTINUED)
               UTILITIES -- (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                                                 <C>
               Xcel Energy, Inc.:
       15,000    $4.08 Pfd., Series B ........................................................     $      1,158,000*
       20,040    $4.10 Pfd., Series C ........................................................            1,554,703*
       35,510    $4.11 Pfd., Series D ........................................................            2,761,435*
       17,750    $4.16 Pfd., Series E ........................................................            1,397,191*
       10,000    $4.56 Pfd., Series G ........................................................              862,850*
- -------------------------------------------------------------------------------------------------------------------
                                                                                                         86,866,473
                                                                                                   ----------------
               OIL AND GAS -- 5.0%
- ----------------------------------------------------------------------------------------------------------------------
       17,200  Anadarko Petroleum Corporation, 5.46% Pfd. ....................................            1,764,720*
        6,650  Apache Corporation, 5.68% Pfd., Series B ......................................              693,927*
        8,000  Devon Energy Corporation, 6.49% Pfd., Series A ................................              847,360*
        6,125  EOG Resources, Inc., 7.195% Pfd., Series B ....................................            6,536,355*
       10,000  Lasmo America Limited, 8.15% Pfd., 144A**** ...................................            1,104,650*
- -------------------------------------------------------------------------------------------------------------------
                                                                                                         10,947,012
                                                                                                   ----------------
               REAL ESTATE INVESTMENT TRUST (REIT) -- 1.0%
- ----------------------------------------------------------------------------------------------------------------------
       40,000  Realty Income Corporation, 7.375% Pfd., REIT, Series D ........................            1,067,800
       40,000  Regency Centers Corporation, 7.25% Pfd., REIT .................................            1,041,400
- -------------------------------------------------------------------------------------------------------------------
                                                                                                          2,109,200
                                                                                                   ----------------
               MISCELLANEOUS INDUSTRIES -- 1.8%
- ----------------------------------------------------------------------------------------------------------------------
       13,600  E.I. Du Pont de Nemours and Company, $4.50 Pfd., Series B .....................            1,269,220*
       36,200  Farmland Industries, Inc., 8.00% Pfd., 144A**** ...............................               18,100*+
       30,500  Ocean Spray Cranberries, Inc., 6.25% Pfd., 144A**** ...........................            2,565,203*
       26,000  Touch America Holdings, $6.875 Pfd. ...........................................                  --*+
- -------------------------------------------------------------------------------------------------------------------
                                                                                                          3,852,523
                                                                                                   ----------------
               TOTAL PREFERRED SECURITIES
                 (Cost $182,871,835) .........................................................          201,991,223
                                                                                                   ----------------
CORPORATE DEBT SECURITY -- 1.1%
               OIL AND GAS -- 1.1%
- ----------------------------------------------------------------------------------------------------------------------
       85,900  Nexen, Inc., 7.35% Subordinated Notes .........................................            2,313,287(1)
- -------------------------------------------------------------------------------------------------------------------
               TOTAL CORPORATE DEBT SECURITY
                 (Cost $2,245,426) ...........................................................            2,313,287
                                                                                                   ----------------
</TABLE>


                                       9
<PAGE>

- --------------------------------------------------------------------------------
Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 2005 (UNAUDITED)
- ------------------------------------------------------------------

<TABLE>
<CAPTION>
SHARES/$ PAR                                                                                            VALUE
- ------------                                                                                          ---------

COMMON STOCKS AND CONVERTIBLE SECURITIES -- 4.4%
               BANKING -- 0.4%
- ---------------------------------------------------------------------------------------------------------------------
<S>            <C>                                                                                 <C>
       50,000  New York Community Bancorp, Inc. .............................................      $        913,750*
- -------------------------------------------------------------------------------------------------------------------
                                                                                                            913,750
                                                                                                   ----------------
               INSURANCE -- 0.4%
- ---------------------------------------------------------------------------------------------------------------------
       25,000  UnumProvident Corporation, 8.25% Mandatory Convertible, 05/16/06 .............               857,875
- -------------------------------------------------------------------------------------------------------------------
                                                                                                            857,875
                                                                                                   ----------------
               UTILITIES -- 3.6%
- ---------------------------------------------------------------------------------------------------------------------
       97,500  Duke Energy Corporation ......................................................             2,634,937*
       64,496  FPL Group, Inc. ..............................................................             5,125,820*
- -------------------------------------------------------------------------------------------------------------------
                                                                                                          7,760,757
                                                                                                   ----------------
               TOTAL COMMON STOCKS AND CONVERTIBLE SECURITIES
                 (Cost $8,373,345) ..........................................................             9,532,382
                                                                                                   ----------------
OPTION CONTRACTS -- 1.0%
        1,275  June Put Options on June U.S. Treasury Bond Futures, Expiring 05/20/05 .......             2,139,360+
- -------------------------------------------------------------------------------------------------------------------
               TOTAL OPTION CONTRACTS
                 (Cost $1,580,670) ..........................................................             2,139,360
                                                                                                   ----------------
MONEY MARKET FUND -- 0.6%
    1,342,237  BlackRock Provident Institutional, TempFund ..................................             1,342,237
- -------------------------------------------------------------------------------------------------------------------
               TOTAL MONEY MARKET FUND
                 (Cost $1,342,237) ..........................................................             1,342,237
                                                                                                   ----------------
</TABLE>


                                       10
<PAGE>

- --------------------------------------------------------------------------------
              Flaherty & Crumrine Preferred Income Opportunity Fund Incorporated
                                            PORTFOLIO OF INVESTMENTS (CONTINUED)
                                                   FEBRUARY 28, 2005 (UNAUDITED)
              ------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                                                        VALUE
                                                                                                      ---------
<S>                                                                                                <C>
 TOTAL INVESTMENTS (Cost $196,413,513***) ......................................       99.7%       $    217,318,489
 OTHER ASSETS AND LIABILITIES (NET) ............................................        0.3%                761,459
                                                                                    -------        ----------------
 TOTAL NET ASSETS AVAILABLE TO COMMON AND PREFERRED STOCK ......................      100.0%++     $    218,079,948
                                                                                    -------        ----------------
 MONEY MARKET CUMULATIVE PREFERRED(TM) STOCK (MMP(R)) REDEMPTION VALUE ....................             (70,000,000)
 TOTAL NET ASSETS AVAILABLE TO COMMON STOCK ...............................................        $    148,079,948
                                                                                                   ================
<FN>
- ----------
   *  Securities  eligible for the Dividends Received Deduction and distributing
      Qualified Dividend Income.
  **  Securities distributing Qualified Dividend Income only.
 ***  Aggregate cost of securities held.
****  Securities exempt from registration under Rule 144A of the Securities Act
      of 1933. These securities may by resold in transactions exempt from
      registration to qualified institutional buyers.
 (1)  Foreign Issuer.
   +  Non-income producing.
  ++  The percentage shown for each investment category is the total value of
      that category as a percentage of net assets available to Common and
      Preferred Stock.

             ABBREVIATIONS:
REIT  -- Real Estate Investment Trust
PFD.  -- Preferred Securities
PVT.  -- Private Placement Securities
         Capital Securities are treated as debt instruments for financial
         statement purposes and the amounts shown in the Shares/$ Par column are
         dollar amounts of par value.
</FN>
</TABLE>


                                       11
<PAGE>

ITEM 2. CONTROLS AND PROCEDURES.

    (a)  The registrant's  principal executive and principal financial officers,
         or  persons  performing  similar  functions,  have  concluded  that the
         registrant's  disclosure  controls and  procedures  (as defined in Rule
         30a-3(c)  under the  Investment  Company Act of 1940,  as amended  (the
         "1940 Act") (17 CFR 270.30a-3(c)))  are effective,  as of a date within
         90 days of the filing date of the report that  includes the  disclosure
         required by this paragraph, based on their evaluation of these controls
         and  procedures  required by Rule  30a-3(b)  under the 1940 Act (17 CFR
         270.30a-3(b))  and Rules  13a-15(b) or 15d-15(b)  under the  Securities
         Exchange   Act  of  1934,   as  amended   (17  CFR   240.13a-15(b)   or
         240.15d-15(b)).


    (b)  There  were  no  changes  in the  registrant's  internal  control  over
         financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
         CFR  270.30a-3(d))  that occurred during the  registrant's  last fiscal
         quarter that have  materially  affected,  or are  reasonably  likely to
         materially  affect,  the  registrant's  internal control over financial
         reporting.


ITEM 3. EXHIBITS.

Certifications  pursuant to Rule 30a-2(a)  under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.


<PAGE>

                                   SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) FLAHERTY & CRUMRINE PREFERRED INCOME OPPORTUNITY FUND INCORPORATED
            --------------------------------------------------------------------

By (Signature and Title)*    /S/ DONALD F. CRUMRINE
                         -------------------------------------------------------
                             Donald F. Crumrine, Director, Chairman of the Board
                             and Chief Executive Officer
                             (principal executive officer)

Date              APRIL 18, 2005
    ----------------------------------------------------------------------------


Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment  Company  Act of  1940,  this  report  has been  signed  below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.


By (Signature and Title)*    /S/ DONALD F. CRUMRINE
                         -------------------------------------------------------
                             Donald F. Crumrine, Director, Chairman of the Board
                             and Chief Executive Officer
                             (principal executive officer)

Date              APRIL 18, 2005
    ----------------------------------------------------------------------------


By (Signature and Title)*  /S/ R. ERIC CHADWICK
                         -------------------------------------------------------
                           R. Eric Chadwick, Chief Financial Officer, Treasurer,
                           Vice President and Secretary
                           (principal financial officer)

Date              APRIL 18, 2005
    ----------------------------------------------------------------------------



* Print the name and title of each signing officer under his or her signature.


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>certs302.txt
<DESCRIPTION>302 CERTS
<TEXT>
         CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND
                      SECTION 302 OF THE SARBANES-OXLEY ACT

I, Donald F. Crumrine, certify that:

1.            I have  reviewed  this  report on Form N-Q of  Flaherty & Crumrine
              Preferred Income Opportunity Fund Incorporated;

2.            Based on my  knowledge,  this  report  does not contain any untrue
              statement  of a  material  fact or omit to state a  material  fact
              necessary  to  make  the   statements   made,   in  light  of  the
              circumstances   under  which  such   statements   were  made,  not
              misleading with respect to the period covered by this report;

3.            Based on my knowledge,  the schedules of  investments  included in
              this  report   fairly   present  in  all  material   respects  the
              investments  of the registrant as of the end of the fiscal quarter
              for which the report is filed;

4.            The registrant's other certifying officer(s) and I are responsible
              for   establishing   and  maintaining   disclosure   controls  and
              procedures  (as  defined  in Rule  30a-3(c)  under the  Investment
              Company Act of 1940) and internal control over financial reporting
              (as defined in Rule 30a-3(d) under the  Investment  Company Act of
              1940) for the registrant and have:

                (a) Designed such disclosure controls and procedures,  or caused
                    such disclosure controls and procedures to be designed under
                    our   supervision,   to  ensure  that  material  information
                    relating  to  the  registrant,  including  its  consolidated
                    subsidiaries,  is  made  known  to us by others within those
                    entities,  particularly  during  the  period  in  which this
                    report is being prepared;

                (b) Designed such internal control  over financial reporting, or
                    caused such  internal control over financial reporting to be
                    designed   under  our  supervision,  to  provide  reasonable
                    assurance regarding the  reliability  of financial reporting
                    and the  preparation  of financial  statements  for external
                    purposes in  accordance  with generally  accepted accounting
                    principles;

                (c) Evaluated the effectiveness of the  registrant's  disclosure
                    controls and procedures and presented  in  this  report  our
                    conclusions   about  the  effectiveness  of  the  disclosure
                    controls and procedures,  as of a date  within 90 days prior
                    to the filing date of this report, based on such evaluation;
                    and

                (d) Disclosed in this report  any  change  in  the  registrant's
                    internal control  over  financial  reporting  that  occurred
                    during  the registrant's  most  recent  fiscal  quarter that
                    has  materially   affected,  or   is  reasonably  likely  to
                    materially  affect,  the registrant's  internal control over
                    financial reporting; and

<PAGE>

5.            The registrant's other certifying  officer(s) and I have disclosed
              to the  registrant's  auditors  and  the  audit  committee  of the
              registrant's   board  of  directors  (or  persons  performing  the
              equivalent functions):

                (a) All significant deficiencies and material weaknesses in  the
                    design or  operation  of  internal  control  over  financial
                    reporting  which are reasonably likely to  adversely  affect
                    the registrant's ability to record, process, summarize,  and
                    report financial information; and

                (b) Any   fraud,  whether  or    not  material,  that   involves
                    management or other employees who have a significant role in
                    the  registrant's internal control over financial reporting.


Date:  APRIL 18, 2005        /S/ DONALD F. CRUMRINE
      --------------------   ---------------------------------------------------
                             Donald F. Crumrine, Director, Chairman of the Board
                             and Chief Executive Officer
                             (principal executive officer)



<PAGE>



         CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND
                      SECTION 302 OF THE SARBANES-OXLEY ACT

I, R. Eric Chadwick, certify that:

1.            I  have  reviewed  this  report on Form N-Q of Flaherty & Crumrine
              Preferred Income Opportunity Fund Incorporated;

2.            Based on my knowledge, this  report  does  not  contain any untrue
              statement of a material  fact or omit  to  state a  material  fact
              necessary   to   make   the   statements  made,  in  light  of the
              circumstances  under  which  such  statements   were    made,  not
              misleading with respect to the period covered by this report;

3.            Based  on  my  knowledge,  the  schedules of investments  included
              in this report  fairly  present  in  all   material   respects the
              investments  of the  registrant  as  of  the  end  of  the  fiscal
              quarter for which the report is filed;

4.            The    registrant's    other    certifying   officer(s) and I  are
              responsible    for    establishing   and  maintaining   disclosure
              controls and procedures (as defined   in  Rule  30a-3(c) under the
              Investment  Company  Act   of   1940) and  internal  control  over
              financial  reporting  (as defined   in Rule  30a-3(d)  under   the
              Investment Company Act of 1940) for the registrant and have:

                (a) Designed such disclosure controls and  procedures, or caused
                    such disclosure controls and procedures to be designed under
                    our   supervision,  to  ensure  that  material   information
                    relating  to  the  registrant,  including  its  consolidated
                    subsidiaries, is made known  to  us  by  others within those
                    entities, particularly  during  the  period  in  which  this
                    report is being prepared;

                (b) Designed such internal control over financial reporting,  or
                    caused such internal control over financial  reporting to be
                    designed  under  our   supervision, to  provide   reasonable
                    assurance regarding the reliability  of  financial reporting
                    and the  preparation  of  financial  statements for external
                    purposes  in  accordance  with generally accepted accounting
                    principles;

                (c) Evaluated the  effectiveness of the registrant's  disclosure
                    controls and procedures  and  presented  in this  report our
                    conclusions  about  the  effectiveness  of  the   disclosure
                    controls and  procedures, as of a date within 90 days  prior
                    to the filing date of this report, based on such evaluation;
                    and

                (d) Disclosed in this  report  any  change  in the  registrant's
                    internal  control  over  financial  reporting  that occurred
                    during the  registrant's most recent fiscal quarter that has
                    materially affected, or is  reasonably  likely to materially
                    affect,  the  registrant's internal control  over  financial
                    reporting; and

<PAGE>

5.            The   registrant's   other   certifying  officer(s)  and   I  have
              disclosed to the  registrant's auditors  and  the  audit committee
              of  the  registrant's  board  of  directors (or persons performing
              the equivalent functions):

                (a) All significant deficiencies and material  weaknesses in the
                    design  or  operation  of internal  control  over  financial
                    reporting which are reasonably  likely  to  adversely affect
                    the registrant's  ability to record, process, summarize, and
                    report financial information; and

                (b) Any fraud, whether or not material, that involves management
                    or  other  employees  who  have a significant  role  in  the
                    registrant's internal control over financial reporting.


Date:   APRIL 18, 2005                /S/ R. ERIC CHADWICK
      ----------------------------    ------------------------------------------
                                      R. Eric Chadwick, Chief Financial Officer,
                                      Treasurer, Vice President and Secretary
                                      (principal financial officer)

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
