Answer:
They are just like hand puppets except that you don't stick your hand inside--you stick a stick inside. In the simplest form, the arms and legs will swing freely and the mouth does not move. Additional sticks can be added to control those body parts.
The Muppet "Kermit the Frog" is an example of a hybrid puppet. The puppeteer's hand controls the mouth as with any hand puppet and the arms were controlled by a thin stick or wire. In some cases, this puppet was controlled by strings, making it a marionette.