Favor of forcing bondholders to convert bonds to shares

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Reference no: EM131087658

A convertible bond gives the investor the right to convert a corporate bond with a face amount of $1000 into a specific number of shares of stock. Since the conversion will increase the number of shares and dilute the ownership percent of each shareholder owns, why should a current shareholder be in favor of forcing bondholders to convert their bonds to shares?

Reference no: EM131087658

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