The liquidity level of hybrid stocks in the market tends to be lower than that of common stocks. Hybrid stocks, such as preferred shares and convertible bonds, often attract a more niche group of investors, which can reduce their trading frequency. While these securities combine elements of debt and equity, they don’t always have the same widespread appeal or demand as common stocks, resulting in fewer buyers and sellers. This limited interest can create wider bid-ask spreads, potentially increasing transaction costs. Furthermore, liquidity varies by the issuing company’s size, credit rating, and industry. Despite lower liquidity, hybrid stocks may offer attractive features like fixed dividends or conversion options, appealing to income-focused or conservative investors with a long-term view.