Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 183

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 183
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 municipal bonds in which MIY invests.

Strategic Transactions and Other Management Techniques

MIY 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 management purposes, subject to MIY’s investment restrictions. While MIY’s use of Strategic
Transactions is intended to reduce the volatility of the NAV of MIY’s common shares, the NAV of MIY’s common shares will fluctuate. No assurance can be given that MIY’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 MIY 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 MIY to the risk that, if the Investment Advisor incorrectly forecasts market values, interest rates or other applicable factors,
MIY’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 MIY’s portfolio. MIY 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 MIY to sell or purchase portfolio securities at inopportune times or for prices other than current market values, may limit the amount of appreciation
MIY can realize on an investment or may cause MIY to hold a security that it might otherwise sell. Furthermore, MIY 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.

MIY’s investment objective and the requirements of Subchapter M of the Code for
qualification as a regulated investment company may restrict or affect the ability of MIY 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 MIY’s dividends to