There are companies that offer preferred shares with the option of converting them to common shares at a later date, subject to certain conditions. These are referred to as hybrid stocks or convertible preferred shares, and they may or may not have voting privileges.

Hybrid stocks are financial instruments that combine features of both equity (stocks) and debt (bonds), offering a unique blend of risk and return. They often provide regular income, like bonds, while also offering the potential for capital appreciation, similar to stocks. Examples include preferred stocks and convertible bonds.

Preferred stocks pay fixed dividends and have priority over common stocks in bankruptcy but lack voting rights. Convertible bonds can be exchanged for a fixed number of common shares, blending stability with potential equity gains. Hybrid stocks appeal to investors seeking steady income with moderate risk.

While hybrids can diversify portfolios, they may carry unique risks, like sensitivity to interest rate changes, lower liquidity, or conditions tied to their conversion or redemption features.