Company: MYI
Filing Date: 2025-09-05
Form Type: 424B3
Source: 0001193125-25-196285
Chunk: 208

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-09-05
Form: 424B3
Chunk 208
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 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 MVF’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. MVF 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 MVF Municipal Bonds of the market sector for reasons that do not apply to the particular MVF
Municipal Bonds that are considered undervalued. MVF’s investment in underrated or undervalued MVF 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 MVF will generally result in capital
gain distributions subject to federal capital gains taxation.

MVF ordinarily does not intend to realize significant
investment income not exempt from federal income tax. From time to time, MVF 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 MVF
Municipal Bonds for investment by MVF.

Description of MVF Municipal Bonds

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

Temporary Investments

During temporary defensive periods (e.g., times when, in Investment Advisor’s opinion, temporary imbalances of supply and
demand or other temporary dislocations in the tax-exempt bond market adversely affect the price at which long-term or intermediate-term MVF Municipal Bonds are available), and in order to keep cash on hand
fully invested, MVF may invest up to 100% of its total assets in liquid, short-term investments including high quality, short-term securities which may be either tax-exempt or taxable and securities of