Shemales do indeed exist. They are typically men who have had breast implants or hormone therapy in the hopes of have breast grow naturally. A more proper term for these people is transwomen, or transgender.
There are a great deal of misconceptions with transwomen. Many feel that they are simply making these changes to facilitate a position in the sex industry, pornography, escorting, and the like. While there are some transgender people in the sex industry, many of them feel that they are simply expressing themselves in a comfortable way; they really do feel they are women trapped in men's bodies. I won't argue the philosophy beyond that however. I will end by saying that many transwomen do not have immoral intentions, although many feel that they do.
Many transgender people are also waiting for a complete sex change operation, the removal of male genitalia and the addition of female genitalia. People who have undergone this procedure cannot produce children however; it is only the external organs that are added, not the internal organs.
