Company: MYI
Filing Date: 2025-08-08
Form Type: PRE 14A
Source: 0001193125-25-176952
Chunk: 106

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-08-08
Form: PRE 14A
Chunk 106
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 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.                                                                                                                                                                   |

| • |     | 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, systems failures, inadequate controls and human error.          |

| ● | Valuation Risk—the risk that valuation sources for a derivative will not be readily available in                                                                               
 the market. This is possible especially in times of market distress, since many market participants may be reluctant to purchase complex instruments or quote prices for them. |

| ● | Volatility Risk—the risk that the value of derivatives will fluctuate significantly within a 
 short time period.                                                                           |

When a derivative is used as a hedge against a position that the Acquiring Fund holds, any loss generated by the derivative generally should be substantially offset by gains on the hedged investment, and vice versa. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. Hedges are sometimes subject to imperfect matching between the derivative and the