What is the explanation for the growth in fund balance while observing a decrease in shares within the holdings?

The absence of shares in the holdings after their purchase may be attributed to instances of short delivery. Under such circumstances, two potential resolutions may unfold. Firstly, on the T+2 day, the individual might receive the shares that were initially short-delivered. Conversely, if the exchange encounters difficulties in obtaining the shares on behalf of the individual, the transaction may be resolved through cash settlement. In this scenario, the exchange facilitates the settlement by offering a cash credit determined by the close-out rate. 

The close-out rate is established as the greater of the stock’s highest price during the period from the sale date to the auction day or 20% above the closing price on the auction day (T+1).

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