The bleaching of the absorption has been studied for CdSe quantum dots
in the strong confinement limit by nanosecond pump-and-probe spectros
copy. For high excitation we detect optical gain in a broad spectral r
egion below the absorption edge accompanied by a new peak in the lumin
escence. The gain arises from stimulated decay of inverted one-electro
n-hole pair states and of two-electron-hole pair states. These results
are confirmed by examination of the time-resolved luminescence.