<PAGE>
 

                                    PART II
 

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
 
  Zapata's Common Stock is listed on the New York Stock Exchange. On April 27,
1994, Zapata's stockholders approved the Reverse Stock Split effective May 3,
1994, which reduced the number of common shares outstanding from approximately
158.3 million to approximately 31.7 million. The number of authorized shares
remained at 165.0 million and par value of the Common Stock was unchanged. The
high and low sales prices for the Common Stock as reported in the consolidated
transactions reporting system and adjusted to reflect the reverse stock split
for each quarterly period for the last two fiscal years, as well as the amount
per share of dividends declared during such periods, are shown in the following
table.
 

<TABLE>
<CAPTION>
                         SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31,
     QUARTER ENDED           1994        1994     1994        1993         1993        1993     1993        1992
     -------------       ------------- -------- --------- ------------ ------------- -------- --------- ------------
<S>                      <C>           <C>      <C>       <C>          <C>           <C>      <C>       <C>
High sales price........    $ 5.50      $ 6.25    $6.88      $8.13         $6.25      $6.25     $6.25      $5.63
Low sales price.........      4.00        4.00     5.63       5.00          4.38       5.00      3.75       3.43
Dividends declared......     0.035       0.035       --         --            --         --        --         --
</TABLE>

 
  The Company announced in December 1994 that its Board of Directors had
determined to discontinue the payment of dividends on its Common Stock and $2
Noncumulative Convertible Preference Stock ("Preference Stock").
 
  The rights of holders of the Common Stock to receive dividends or other
payments with respect thereto are subject to the prior and superior rights of
holders of Zapata's Preferred Stock and Preference Stock, then outstanding. As
of the date of this Report, Zapata had outstanding 22,498 shares of $6
Cumulative Preferred Stock ("Preferred Stock") and 2,627 shares of Preference
Stock.
 
  As of June 30, 1994, Zapata redeemed one-half of the approximately 45,000
outstanding shares of the Company's Preferred Stock at $100 per share. The
Company will redeem the balance of its outstanding Preferred Stock in January
1995.
 
  On December 28, 1994, there were 10,148 holders of record of Common Stock.
 
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