Preferred equity and hybrid capital are types of securities that have both debt-like and equity-like features. Preferred equity is a class of stock that pays dividends before common stock and has priority over common stock in the event of liquidation. However, preferred equity does not usually have voting rights or appreciation potential like common stock. Hybrid capital is a broad term that encompasses various securities that combine elements of debt and equity, such as convertible bonds, contingent convertible bonds, or preferred securities.