With Bain planning to exercise the convertible bonds it owns in Gome, giving it a near-10% share of the company's enlarged share capital, the choice for other investors is stark.
Stockholders have the right to vote on the issuance of convertible securities because they will dilute current Stockholders' proportionate ownership when converted (changed into share of common).
股东对发行可转换证券拥有投票权，因为当转换(转换为普通股)时会稀释当前股东的所有权比例。
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A convertible bond is a bond that gives the holder the right to convert the bond to common share of the issuer at a fixed ratio during a stated period.