The term shemale refers to transwomen (male-to-female transgender persons) who have female breasts, through hormone replacement therapy or through breast augmentation and usually other female secondary sex characteristics, but who have not undergone genital reassignment surgery.
With very few exceptions, transwomen who are not working in the sex industry (that is, the majority), even those who fit the physical description, are offended when called "shemale" for several reasons; because of the association with the sex industry, because many transwomen who had not genital reassignment surgery want it and because their gender identity is female, not "male", nor do they feel they are half-female. The term chicks with dicks is also used, but this term is almost exclusively used in the sex industry and is also considered offensive.
See also: List of transgender-related topics
