Clicking 'Fullscreen' freezes Mac OSX and screen turns white

Whenever I click on the fullscreen button in the options, my OSX instantly freezes (nothing is responsive) and after a couple of seconds the whole screen turns white. While its like this, I can still control the mouse, and I even hear sounds.

The only thing I can do at that point is shut down my iMac by holding the power button down for a while.

Its a very disappointing issue because my iMac is brand new. I can post my iMac's specs if needed

PS: If necessary, I could record a video of this issue.