According to a few, investments are classified under 2 types Secured and unsecured .All those investments which have a fixed return like FD, Debentures, etc come under secured. And all those which don’t have a fixed return like equity shares are classified as unsecured.So wherever a person would like to invest his objective is quite clear high security and high returns. In order to achieve this objective a lot of researchers have been working to find a suitable method of mathematically based analysis for providing a quantitative basis for management decisions since 1950. As a result a strong relationship has been formed between Operations Research and Finance. The relationships between the variables in finance models are usually stable and well defined, so that the resulting OR model is a good representation of the problem. In this we will be explain various methods of using Operations Research methods to value financial instruments, identify market imperfections, design securities, regulate markets, evaluate and control risks, model strategic problems, and understand the functioning of financial markets.