<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 a one-for-five reverse stock split (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. Unless the context otherwise requires,
all references in this Report to Common Stock share and per share amounts
reflect the Reverse Stock Split. 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
with respect to the Common Stock 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:               1995        1995     1995        1994         1994        1994     1994        1993
- --------------           ------------- -------- --------- ------------ ------------- -------- --------- ------------
<S>                      <C>           <C>      <C>       <C>          <C>           <C>      <C>       <C>
High sales price........     $4.63      $4.38     $4.13      $4.50        $5.50       $6.25     $6.88      $8.13
Low sales price.........      2.88       2.50      3.25       3.25         4.00        4.00      5.63       5.00
Dividends declared......        --         --        --         --         0.035       0.035       --         --
</TABLE>

 
  The Company announced in December 1994 that its Board of Directors had
determined to discontinue indefinitely 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 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 $6 Cumulative Preferred Stock at $100 per
share. The Company redeemed the balance of its outstanding $6 Cumulative
Preferred Stock in January 1995.
 
  On December 15, 1995, there were 9,694 holders of record of Common Stock.
 
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