The "Convert to Shape" command make a shape layer from the current path.
This method, lets us, for example, "vectorize" a raster image as follows:
- Select some object, e.g., with the Polygonal Lasso tool.
- Open the "Paths" dialog.
- Convert the selection to path.
- Apply the "Convert to Shape" command (fig.1).
- In the dialog box that opens, choose a fill color and click "OK".
Alternatively you may fill the active path with a gradient (Layer > New Fill Layer > Gradient) or pattern (Layer > New Fill Layer > Pattern).