We report the synthesis of solvent-stabilized lead-iodide nanoparticles, using a convenient route involving coordinating solvents. The resultant colloids show strong absorption features in the ultraviolet region of the optical spectrum, which are consistent with the formation of semiconducting nanocrystals of lead (II) iodide. An effective-mass approximation model of quantum-confined states is in good agreement with the observed transition energies, giving strong indications of the particle morphologies and dimensions. Intense photoluminescence is also observed, with some spectral tuning possible with ripening time, giving a range of emission photon energies approximately spanning from 2.5 to 3.0 eV. We measure photo-stable luminescence quantum efficiencies of around 20% in solution, increasing to up to 30% if the coordinating ligand is exchanged for a Lewis-base capping layer. This demonstrates the potential for the utilization of lead-iodide nanocrystals in visible optoelectronics applications.