One can create custom shapes mixing existing default shapes. Here is a link to detailed step by step tutorial how to create custom shape using default shapes by cutting hole into shape (subtracting one shape from another) http://adobephotoshopsecrets.blogspot.com/2011/02/make-hole-in-shape.h tml
The "Shape tools option" paragraph (above) is not correct.
What you have there is the CS5, not the CS6 version.
It has changed.
I'd have added screen-captures to better illustrate my point, but it cannot be done here.
Thanks for the note
What I realized after, was that I had copied and pasted the photo, soemthing akin to below was transferred:
I've added ***** so the photo will not download.
Afterwards, the photos did appear, and I realized that that is how Adobe transfers images when they are copied and pasted.The writing appears initially, but afterwards, the actual photo is presented.
Europe, Middle East and Africa