The gain medium of a laser is a material of controlled purity, size, concentration, and shape, which amplifies the beam by the process of stimulated emission. It can be of any state: gas, liquid, solid or plasma. The gain medium absorbs pump energy, which raises some electrons into higher-energy ("excited") quantum states. Particles can interact with light both by absorbing photons or by emitting photons. Emission can be spontaneous or stimulated. In the latter case, the photon is emitted in the same direction as the light that is passing by. When the number of particles in one excited state exceeds the number of particles in some lower-energy state, population inversion is achieved and the amount of stimulated emission due to light that passes through is larger than the amount of absorption. Hence, the light is amplified. By itself, this makes an optical amplifier. When an optical amplifier is placed inside a resonant optical cavity, one obtains a laser.
The light generated by stimulated emission is very similar to the input signal in terms of wavelength, phase, and polarization. This gives laser light its characteristic coherence, and allows it to maintain the uniform polarization and often monochromaticity established by the optical cavity design.
The optical cavity, a type of cavity resonator, contains a coherent beam of light between reflective surfaces so that the light passes through the gain medium more than once before it is emitted from the output aperture or lost to diffraction or absorption. As light circulates through the cavity, passing through the gain medium, if the gain (amplification) in the medium is stronger than the resonator losses, the power of the circulating light can rise exponentially. But each stimulated emission event returns a particle from its excited state to the ground state, reducing the capacity of the gain medium for further amplification. When this effect becomes strong, the gain is said to be saturated. The balance of pump power against gain saturation and cavity losses produces an equilibrium value of the laser power inside the cavity; this equilibrium determines the operating point of the laser. If the chosen pump power is too small, the gain is not sufficient to overcome the resonator losses, and the laser will emit only very small light powers. The minimum pump power needed to begin laser action is called the lasing threshold. The gain medium will amplify any photons passing through it, regardless of direction; but only the photons aligned with the cavity manage to pass more than once through the medium and so have significant amplification.