I don't know if this helps, but when I opened my IRA with Vanguard, I wanted them to transfer my 500 index fund into the IRA. I was talking to them on the phone during this and at first they were going to cash enough shares to equal $2000 but I told them I would rather they transfer the shares into the IRA instead, which they did. Anyhow, maybe it is their policy to transfer cash and not shares, unless told to do so.
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