Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 213

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 213
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 cannot be assured. Strategic Transactions subject MVF to the risk that, if the Investment Advisor incorrectly forecasts market values, interest rates or other applicable factors,
MVF’s performance could suffer. Certain of these Strategic Transactions, such as investments in inverse floating rate securities and credit default swaps, may provide investment leverage to MVF’s portfolio. MVF is not required to use
derivatives or other portfolio strategies to seek to hedge its portfolio and may choose not to do so.

The use of
Strategic Transactions may result in losses greater than if they had not been used, may require MVF to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation
MVF can realize on an investment or may cause MVF to hold a security that it might otherwise sell. Furthermore, MVF may only engage in Strategic Transactions from time to time and may not necessarily be engaging in hedging activities when movements
in interest rates occur.

MVF’s investment objectives and the requirements of Subchapter M of the Code for
qualification as a regulated investment company may restrict or affect the ability of MVF to engage in Strategic Transactions. In addition, the use of certain Strategic Transactions may give rise to taxable income and have certain other
consequences, such as subjecting a portion of MVF’s dividends to regular federal income tax. However, under normal circumstances, MVF does not intend to use Strategic Transactions that give rise to taxable income.

Put and Call Options on Securities and Indices. MVF may purchase and sell put and call options on securities and
indices. A put option gives the purchaser of the option the right to sell and the writer the obligation to buy the underlying security at the exercise price during the option period. MVF may also purchase and sell options on bond indices
(“index options”). Index options are similar to options on securities except that, rather than taking or making delivery of securities underlying the option at a specified price upon exercise, an index

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option gives the holder the right to receive cash upon exercise of the option if the level of the bond index upon which the option is based is greater, in the case of a call, or less, in the case
of a put, than the exercise price of the option. The purchase of a put option on a debt security could protect MVF’s holdings in a security or a number of securities against a substantial decline in the market value. A call option gives the
purchaser of the option the right to