Company: MYI
Filing Date: 2025-09-08
Form Type: DEF 14A
Source: 0001193125-25-198172
Chunk: 169

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-08
Form: DEF 14A
Chunk 169
---
 opinion of the Investment
Advisor, are worth more than the value assigned to them in the marketplace. The Investment Advisor may at times believe that bonds associated with a particular municipal market sector (for example, but not limited to electric utilities), or issued
by a particular municipal issuer, are undervalued. The Investment Advisor may purchase those bonds for MVT’s portfolio because they represent a market sector or issuer that the Investment Advisor considers undervalued, even if the value of
those particular bonds appears to be consistent with the value of similar bonds. MVT Municipal Bonds of particular types (for example, but not limited to hospital bonds, industrial revenue bonds or bonds issued by a particular municipal issuer) may
be undervalued because there is a temporary excess of supply in that market sector, or because of a general decline in the market price of MVT Municipal Bonds of the market sector for reasons that do not apply to the particular MVT Municipal Bonds
that are considered undervalued. MVT’s investment in underrated or undervalued MVT Municipal Bonds will be based on the Investment Advisor’s belief that their yield is higher than that available on bonds bearing equivalent levels of
interest rate risk, credit risk and other forms of risk, and that their prices will ultimately rise, relative to the market, to reflect their true value. Any capital appreciation realized by MVT will generally result in capital gain distributions
subject to federal capital gains taxation.

95

MVT ordinarily does not intend to realize significant investment income not exempt from
federal income tax. From time to time, MVT may realize taxable capital gains.

Federal tax legislation has limited the types and volume of
bonds the interest on which qualifies for a federal income tax exemption. As a result, this legislation and legislation that may be enacted in the future may affect the availability of MVT Municipal Bonds for investment by MVT.

Description of MVT Municipal Bonds

See
“The Acquiring Fund’s Investments – Description of MYI Municipal Bonds” for additional information regarding the types of municipal bonds in which MVT invests.

Strategic Transactions and Other Management Techniques

MVT may purchase and sell futures contracts, enter into various interest rate transactions and swap contracts (including, but not limited to,
credit default swaps) and may purchase and sell exchange-listed and OTC put and call options on securities 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