We have investigated the degree of linear polarization and time behavi
our of photoluminescence of very small size CdSe nanocrystals under si
ze-selective excitation. At low temperature we observe a luminescence
line Stokes-shifted by a few meV and its phonon replica The degree of
linear polarization is positive at short times then becomes negative a
nd remains constant and equal to -15%. The following model is proposed
. The exciton state is split by electron-hole exchange interaction int
o two states with the optically forbidden state at lower energy. Laser
light creates excitons in the upper energy state. The luminescence li
ne arises from the lower energy state where excitons have relaxed afte
r a few tens of ps. Recombination is made possible through a phonon as
sisted virtual transition to the confined B-exciton state. As a result
the polarization degree is negative at long times. The value of the e
xchange energy obtained from the luminescence Stokes shift (8 meV in 4
0A-diameter nanocrystals) is much larger than the bulk value (0.1 meV)
. The enhancement of exchange interaction by quantum confinement and t
he value of the degree of polarization are in good agreement with theo
retical estimates.