Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 221

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 221
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 and swap contracts, financial indices and futures contracts and use other derivative instruments or management techniques (collectively,
“Strategic Transactions”). These Strategic Transactions may be used for duration management and other risk management purposes, subject to MVF’s investment restrictions. While MVF’s use of Strategic Transactions is intended
to reduce the volatility of the NAV of MVF’s common shares, the NAV of MVF’s common shares will fluctuate. No assurance can be given that MVF’s Strategic Transactions will be effective.

There is no particular strategy that requires use of one technique rather than another as the decision to use any particular strategy or
instrument is a function of market conditions and the composition of the portfolio. The ability of MVF to use Strategic Transactions successfully will depend on the Investment Advisor’s ability to predict pertinent market movements as well as
sufficient correlation among the instruments, which cannot be assured. Strategic Transactions subject MVF to the risk that, if the Investment Advisor incorrectly forecasts market values,

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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