Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 78

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 78
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 derivatives markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies, the participation of speculators, government regulation and intervention, 
 and technical and operational or system failures. In addition, the liquidity of a secondary market in an exchange-traded derivative contract may be adversely affected by “daily price fluctuation limits” established by the exchanges which             
 limit the amount of fluctuation in an exchange-traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may be entered into at a price beyond the limit, thus preventing the liquidation of    
 open positions. Prices have in the past moved beyond the daily limit on a number of consecutive trading days. If it is not possible to close an open derivative position entered into by the Acquiring Fund, the Acquiring Fund would continue to be      
 required to make daily cash payments of variation margin in the event of adverse price movements. In such a situation, if the Acquiring Fund has insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements  
 at a time when it may be disadvantageous to do so.                                                                                                                                                                                                        |

37

| • |     | Index Risk—if the derivative is linked to the performance of an index, it will be subject to the                                                                                                                                                          
 risks associated with changes in that index. If the index changes, the Acquiring Fund could receive lower interest payments or experience a reduction in the value of the derivative to below the price that the Acquiring Fund paid for such derivative. |

| • |     | Legal Risk—the risk of insufficient documentation, insufficient capacity or authority of 
 counterparty, or legality or enforceability of a contract.                               |

| • |     | Leverage Risk—the risk that the Acquiring Fund’s derivatives transactions can magnify the                                                                                                                            
 Acquiring Fund’s gains and losses. Relatively small market movements may result in large changes in the value of a derivatives position and can result in losses that greatly exceed the amount originally invested. |

| • |     | Market Risk—the risk that changes in the value of one or more markets or changes with respect to                                                                                                                                                 
 the value of the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, the Acquiring Fund may be required to pay substantial additional margin to maintain its position or the Acquiring Fund’s 
 returns may be adversely affected.                                                                                                                                                                                                               |

| • |     | Operational Risk—the risk related to potential operational issues, including documentation 
 issues, settlement issues