Nuveen Dividend Advantage Municipal Fund 3 (the Fund) is a closed-end management investment company. The fund's investment objective is to provide current income exempt from regular federal income tax and to enhance portfolio value. The fund invests in municipal securities that are exempt from federal income taxes. The Fund�s investment adviser is Nuveen Asset Management, which is a wholly owned subsidiary of Nuveen Investments, Inc. (Nuveen).